/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/080725.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Friday, July 25, 2008, Vol. 11, No. 147 Headlines A U S T R A L I A A.C.N. 055 252 376: To Declare Dividend on August 4 CENTRAL QUEENSLAND: Member's Final Meeting Set for August 4 CHG WATERLOO: Members' Final Meeting Slated for August 4 CHG WESTERN: Member's Final Meeting Set for August 4 EASTERN HOUSING: Liquidator to Give Wind-Up Report on August 4 FINCORP: Court Dissolves Asset Freeze Order on Former Directors FORREST UNITS: Members and Creditors to Meet on August 4 MST DEVELOPMENT: Members' Meeting Set for August 4 OPES PRIME: Merrill Lynch Shows No Interest in Settlement OPTIMA ICM: Three Subsidiaries Call In Administrators PACIFIC ELECTRONICS: Member's Final Meeting Set for August 4 ROCKY IMAGING: Liquidator to Give Wind-Up Report on August 4 ROCKSTEAD FINANCIAL: Unit Placed Under Administration SOCAMP PTY: Member's Final Meeting Set for August 4 ST GEORGE: ACCC Seeks Further Response on Merger Issues TRONOX INC: Lenders Waive Leverage Ratio Financial Covenant C H I N A CHINA EASTERN: Denies Merger Talks with Shanghai Airlines CHINA EASTERN: Taifook Securities Keeps Airline's "Buy" Rating GAMMA PHARMA: LL Bradford & Co Expresses Going Concern Doubt SINO-FOREST: Moody's Affirms Ba2 Senior Unsecured Rating SPECTRUM BRANDS: Moody's Confirms Caa1 Corporate Family Rating ZIRCON FINANCE: Fitch Cuts Rating on US$15MM Notes to BB from A ZTE CORP: Plans to Penetrate Japan's WCDMA Market ZTE CORP: To Issue CNY400 Million Short-Term Financial Bills H O N G K O N G AIRSTAFF HONG KONG: Wind-Up Petition Hearing Set for August 13 BEST SMOOTHNESS: Wind-Up Petition Hearing Set for September 10 DORIGHT LIMITED: Subject to Profit Richness' Wind-Up Petition LEE SUN: Requires Creditors to File Claims by July 31 LUEN PAK: Creditors' Proofs of Debt Due on August 14 MEDA JEWELRY: Requires Creditors to File Claims by August 18 PAK MAN: Appoints Wai and Fun as Liquidators WAI YIP: Li Man Wai and Tsang Lai Fun I N D I A ANDREW YUL: To Divest 26.2% Stake in Tide Water Oil BROADCAST INITIATIVES: Share Capital Increased to Rs.30 Crores GENERAL MOTOR: Edward Altman's Z-score Model Predicts Bankruptcy JABALPUR MUNICIPAL: Fitch Puts 'BB+(ind)' Nat'l LT Issuer Rating NETWORK LTD: Board Approves Merger Share Exchange Ratio POLAR INDUSTRIES: Ends Polar Product Distributorship Deal TUTICORIN ALKALI: Extends Accounting Year Until March 31, 2009 I N D O N E S I A BANK MANDIRI: Cuts 2008 Loan Growth Target to 18% J A P A N AMPEX CORP: Court Okays Modifications to Plan, D/S Supplement CAPCOM CO: Plans to Establish New Unit Through CE Europe, Ltd. FORD MOTOR: Edward Altman's Z-score Model Predicts Bankruptcy NIPPON STEEL: Resumes Production at Kamaishi Works NIPPON STEEL: Raises Plate Prices to Offset Surging Energy Cost * S&P Sees 2 Japanese Transactions Affected by Zephyr Bankruptcy K O R E A INTERLINE RESOURCES: HJ & Associates Raises Going Concern Doubt N E W Z E A L A N D AIR NEW ZEALAND: Resumes Non-Stop Service to Beijing AIR NEW ZEALAND: Increases Airfares Amid Rising Fuel Prices CASA MIA: Commences Liquidation Proceedings CRAZY TOWN: Commences Liquidation Proceedings DIVCO STEEL: Commences Liquidation Proceedings EASI LAWN: Commences Liquidation Proceedings HANOVER FINANCE: Commerce Commission Opens Investigation LITTLE SCAFFOLDING: Commences Liquidation Proceedings METER HOLDINGS: Shareholders Appointed Liquidators ROOF COATING: Commences Liquidation Proceedings SUCCESS PERSONNEL: Commences Liquidation Proceedings TAUEKI TRANSPORT: Commences Liquidation Proceedings TRIPLE ACT: Shareholders Taps Toon and Finnigan as Liquidators P A K I S T A N AZGARD NINE: Moody's Withdraws B2 Corporate Family Rating P H I L I P P I N E S * PHILIPPINES: Raises PHP70 Bil. From Retail Treasury Bond Offer * PHILIPPINES: Prepays US$498 Mil. in Foreign Loans S I N G A P O R E SCOTTISH RE: Ernst & Young Expresses Going Concern Doubt T H A I L A N D * FITCH: Major Thai Banks' H1 Results Strong Amidst Econ. Shocks X X X X X X X X * Fitch Says Negative Rating Trend in Global Banks Persists * Large Companies with Insolvent Balance Sheets - - - - - ================= A U S T R A L I A ================= A.C.N. 055 252 376: To Declare Dividend on August 4 --------------------------------------------------- A.C.N. 055 252 376 Pty Ltd fka EMS Total Filtration Pty Ltd will declare dividend on Aug. 4, 2008. Only creditors who were able to file their proofs of debt by July 21, 2008, were included in the company's dividend distribution. The liquidator can be reached at: Robert Colin Parker Freer Parker & Associates PO Box 6238, Halifax Street Adelaide SA 5000 Telephone: (08) 8211 7177 Facsimile: (08) 8212 4677 Email: insolvency@freerparker.com.au CENTRAL QUEENSLAND: Member's Final Meeting Set for August 4 ------------------------------------------------------------ Michael Scales, Central Queensland Radiology Pty Ltd's estate liquidator, will meet with the company's members at 9:00 a.m. on Aug. 4, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Michael Scales Ernst & Young 8 Exhibition Street Melbourne VIC 3000 Australia Telephone: (03) 9288 8000 CHG WATERLOO: Members' Final Meeting Slated for August 4 -------------------------------------------------------- G. G. Woodgate, CHG Waterloo Station Property Pty Ltd's estate liquidator, will meet with the company's members at 10:00 a.m. on Aug. 4, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Woodgate & Co. Level 14 25 Bligh Street Sydney, New South Wales Australia Telephone: (02) 9233 6088 CHG WESTERN: Member's Final Meeting Set for August 4 ----------------------------------------------------- G. G. Woodgate, CHG Western Property Pty Ltd's estate liquidator, will meet with the company's members at 10:00 a.m. on Aug. 4, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Woodgate & Co. Level 14 25 Bligh Street Sydney, New South Wales Australia Telephone: (02) 9233 6088 EASTERN HOUSING: Liquidator to Give Wind-Up Report on August 4 -------------------------------------------------------------- Simon Cathro and Salvatore Algeri, Eastern Housing and Tenancy Limited's estate liquidator, will meet with the company's members at 10:00 a.m. on Aug. 4, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Simon Cathro Salvatore Algeri 180 Lonsdale Street Melbourne VIC 3000 Australia Telephone: (03) 9208 7000 FINCORP: Court Dissolves Asset Freeze Order on Former Directors --------------------------------------------------------------- The Supreme Court of New South Wales has dissolved the asset preservation orders against Peter Pengilley,Craig Gallie, Neil Livingstone,Craig Stubbs and Graeme Byers, former directors of Fincorp Investments Ltd and the proceedings against those directors were dismissed. ASIC had obtained a short extension of the orders on June 30, 2008, to allow the Board of Directors of Sandhurst Trustees Limited to make a final decision in relation to a request from the liquidators to provide funding to enable them to pursue insolvent trading claims against these former directors. ASIC sought the dissolution of the orders after having been advised that Sandhurst had resolved, in the best interests of secured note holders, not to agree to the request from the Liquidators. Background The original defendants in these proceedings were Eric Krecichwost, Peter Campbell Pengilley, Craig Robert Gallie, Neil Livingstone, Craig John Stubbs, Mr. Graham Ronald Byers, Deborah Livingstone, Kaye Gallie, Tiffany Krecichwost, Macarthur Investment Group Pty Ltd, Prime Consulting Group Pty Ltd, United Investment Group Pty Ltd and Crest Capital Pty Ltd. Asset preservation orders against these defendants were first obtained on July 5, 2007 and continued under s1323 of the ASIC Act. The orders against Peter Pengilley, Craig Gallie, Neil Livingstone, Craig Stubbs and Graeme Byers were, in large part, obtained for the purpose of protecting the interests of the liquidators, as aggrieved persons, to whom these former directors may have become liable to pay money as a consequence of any insolvent trading proceedings brought against them. Macarthur Investment Group Pty Ltd and Prime Consulting Group Pty Ltd subsequently went into liquidation. The orders against Deborah Livingstone, Kaye Gallie and Tiffany Krecichwost were dissolved on June 30, 2008. The asset preservation orders against Eric Krecichwost, a former director of Fincorp and two related companies, United Investment Group Pty Limited and Crest Capital Pty Limited are still in force and continue until September 29, 2008. These orders continue to restrain these parties from removing, or causing or permitting to be removed all or any of their assets from New South Wales and from Australia and from selling, charging, mortgaging or otherwise dealing with or disposing of all or any of their assets, apart from reasonable living and other expenses. About Fincorp Fincorp Group -- http://www.fincorp.com.au/-- is a boutique funds management and property development business that focuses on mortgage-backed and property products. It is based in Grosvenor Place, Sydney, with around 40 employees across New South Wales, Victoria, and Queensland. Two companies with the Fincorp Group (Fincorp Financial Services Limited and Fincorp Managed Investments Limited) hold Australian Financial Services Licenses and act as Responsible Entities under the Corporations Act 2001. Fincorp and its Funds are regulated by the Australian Securities and Investment Commission. * * * On March 27, 2007, the Troubled Company Reporter-Asia Pacific reported that Fincorp Group went into administration with AU$290 million in debt, of which AU$200 million were owed to investors and AU$90 million to external financiers. David Winterbottom was appointed as administrator together with Mark Korda and Lachlan McIntosh, partners at corporate recovery firm KordaMentha. Fincorp Group has reportedly been struggling under heavy inter- company debt loads and negative cashflow, the TCR-AP cited a report from The Australian, published on March 26, 2007. FORREST UNITS: Members and Creditors to Meet on August 4 -------------------------------------------------------- Forrest Units Pty Ltd will hold a final meeting for its members and creditors on Aug. 4, 2008. During the meeting, the company's liquidators, John Vouris at Lawler Partners, will provide the attendees with property disposal and winding-up reports. The company's liquidators can be reached at: John Vouris Lawler Partners Charted Accountants Level 9, 1 O’Connell Street Sydney NSW 2000 Australia MST DEVELOPMENT: Members' Meeting Set for August 4 -------------------------------------------------- David Clement Pratt and Timothy James Cuming, MST Development Pty Ltd's estate liquidator, will meet with the company's members at 10:00 a.m. on Aug. 4, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: David Clement Prat Timothy James Cuming PricewaterhouseCoopers Level 15, 201 Sussex Street Sydney NSW 1171 Australia OPES PRIME: Merrill Lynch Shows No Interest in Settlement --------------------------------------------------------- Merrill Lynch Australia chief executive Paul Masi has given a strong indication that the firm is unlikely to participate in any settlement deal over collapsed Opes Prime Group Ltd, potentially leaving major lender ANZ Bank to strike its own deal with the administrators, Katherine Jimenez of The Australian reports. The Australian cites Mr. Masi as saying, "You only settle something if you think you have done something wrong." "ANZ's situation is very different from ours and the fact that they choose to try and join us together is their issue. It's got nothing to do with us," Mr. Masi said. According to the Australian, his comments come as Opes Prime administrator John Lindholm attempts to secure a settlement deal with the financiers of the collapsed firm -- ANZ and Merrill -- over the next month. But ANZ has said that any settlement is conditional on all the key players, including Merrill, being involved, the report relates. However, the report says, with Merrill unlikely to participate in a deal, expectations are building that ANZ may be in for a settlement payout, possibly paying Opes' unsecured creditors 60c to 70c on the dollar. Mr. Masi said, "We think that once the matters are heard, we will be shown to have done everything appropriately." Mr. Masi also pointed out that the default event for Merrill only occurred when Opes was put into default by ANZ, the Australian notes. About Opes Prime Opes Prime Group Ltd is an Australian unlisted public company providing a range of financial services and products for high net worth individuals, stockbrokers and financial advisors, asset managers, banks and other firms, both for themselves and their clients. The Group conducts business via a number of operating subsidiaries based in Melbourne, Sydney and Singapore: 1) Opes Prime Stockbroking Limited is a full Market Participant of the Australian Stock Exchange Ltd, and holds an Australian Financial Services Licence (#247408) which enables it to deal and advise in financial services and products to retail and wholesale clients. The company was first registered on 10 March 1999, and started business with its current shareholders in 2005. Opes Prime Stockbroking is a specialist provider of securities lending and equity financing services. In Singapore, the firm operates through Opes Prime Group's wholly owned subsidiary, Opes Prime International Pte Ltd. In Australia, Opes Prime Stockbroking has granted Authorized Representative status to Trader Dealer Pty Ltd, an on-line non-advisory trading execution service for the semi-professional and professional trader. 2) Opes Prime Structured Products Pty Ltd develops, manages and markets specialized leveraged products for the high net worth market, providing outstanding risk protection and return potential. 3) Opes Prime Paradigm Pty Ltd, is a corporate finance and advisory firm specializing in small and mid cap stocks. 4) In Singapore, Opes Prime Asset Management Pte Ltd provides specialist hedge fund incubation, advisory and trade management services, and Five Pillars Associates Pte Ltd provides Islamic finance consultancy. * * * The Troubled Company Reporter-Asia Pacific reported on April 1, 2008, that Opes Prime was placed under receivership after directors became aware of a number of cash and stock movement irregularities in relation to a small number of accounts. Ferrier Hodgson Partners John Lindholm, Peter McCluskey and Adrian Brown have been appointed Administrators by the directors of Opes Prime Group Limited and a number of its subsidiaries and related entities including, Opes Prime Stockbroking Limited. Initial investigations indicate that the solvency of the business was under pressure due to a number of major clients not meeting significant margin calls. The Administrators are currently examining the Group's affairs to quantify the likely liability to OPSL's clients. At the same time, Sal Algeri and Chris Campbell from the Deloitte Corporate Reorganisation Group were appointed by a secured creditor, ANZ Banking Group Ltd., as Receivers and Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd, Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd. OPTIMA ICM: Three Subsidiaries Call In Administrators ----------------------------------------------------- Optima ICM Limited said that the directors of its wholly owned subsidiaries Optima Technology Solutions Pty Limited, Digital City Group Pty Limited and 3CSHOP International Pty Ltd have appointed David Mansfield and Rick Porter of Moore Stephens as voluntary administrators for those companies. Optima ICM said the company and its other subsidiaries are continuing their operations and there is no intention to appoint an administrator to these companies. According to Optima ICM, Optima Technology's principal business is of computer manufacturing and distribution which has been operating under fierce competition from multinational vendors for several years. Optima Technology has had losses for some time but suffered a major setback when it lost the preferred supplier status to the Department of Education and Training in both Queensland and New South Wales. Meanwhile, Optima ICM said the business of Digital City, which was acquired last year, has failed to meet the profit forecasts and has been consistently experiencing losses. Unfortunately with the general downturn in retail sales, management have not been able to turn this business around. As a result of the uncertainty surrounding some of the assets of Optima ICM and pursuant to Section 17.2 of the listing rule, Optima ICM requests the trading suspension to be extended until further notice. Multimedia Sues Digital City Multimedia Technology has launched legal proceedings against Optima ICM's retail subsidiary, Digital City, to recover hundreds of thousands of dollars in debt, Nadia Cameron of ARN reports. Multi Media managing director, John Hassall told ARN that the distributor had not been dealing directly with Optima but confirmed it launched legal action against Digital City last week through the county courts for failure to pay bills between March and June 2008. About Multimedia Technology Multimedia Technology is one of Australia's premier IT distributors. It currently employs 85 staff across 4 states. The company's product range includes optical drives, graphic cards, digital cameras, monitors, notebooks, data storage and wireless networking products. About Optima ICM Optima ICM Limited (ASX:OPI) -- http://www.optimaicm.com-- is engaged in computer assembly and distribution, provision of computer related services, distribution of information technology (IT) and consumer electronics products. The company operates in three segments: computer assembly, IT product distribution and associated services. Its subsidiaries include Optima Technology Solutions Pty Limited, Iocom Solutions Pty Limited, Fortress Networks Pty Limited, OpenNet BI Pty Limited, Internet Business Solutions Pty Limited and 3CShop International Pty Limited. In February 2006, the company launched a buying group business called 3CSHOP, to provide group-buying services to resellers to digital home markets. Optima ICM Limited operates predominantly in Australia. In October 2007, the company acquired electronics and imaging retailer, Digital City, which gives Optima direct access to retail customers in metropolitan areas. PACIFIC ELECTRONICS: Member's Final Meeting Set for August 4 ------------------------------------------------------------ Richard Rohrt, Pacific Electronics Pty Ltd's estate liquidator, will meet with the company's members at 9:00 a.m. on Aug. 4, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Richard Rohrt Scott Partners Consulting Level 1, 173 Burke Road Glen Iris VIC 3146 Australia ROCKY IMAGING: Liquidator to Give Wind-Up Report on August 4 ------------------------------------------------------------ Michael Scales, Rocky Imaging Pty Ltd's estate liquidator, will meet with the company's members at 10:00 a.m. on Aug. 4, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Michael Scales Ernst & Young 8 Exhibition Street Melbourne VIC 3000 Australia Telephone: (03) 9288 8000 ROCKSTEAD FINANCIAL: Unit Placed Under Administration ----------------------------------------------------- Rockstead Financial Services Limited's subsidiary, First Capital Securities Limited, appointed Greg Maloney and Peter Geroff of Ferrier Hodgson as voluntary administrators to FCSL on July 21, 2008. As a consequence, The Public Trustee of Queensland, pursuant to a charge over FCSL for the benefit of unsecured note holders, appointed John Greig and Nicholas Harwood of Deloitte as receivers and managers. Rockstead has not had administrators appointed to it. Rockstead said that FCSL has been in the process of running out its lending book since May 2007 and it has experienced difficulties in recovering its four remaining loans, due to reasons such as delays in building projects, builders becoming insolvent and borrowers being unable to obtain refinance in the current credit crisis. This has strained the liquidity of FCSL and Rockstead to ensure payments to note holders and work out solutions was provided to assist on the loans. FCSL has been able to manage its financial obligations with the financial support of its two Singapore majority shareholders. Unfortunately, this financial support was withdrawn on July 21. The four loans are all secured under first and second mortgages. Rockstead said FCSL will continue to work with all relevant parties for the benefit of note holders. Meanwhile, Rockstead said that Ken Major resigned as a director on July 17, 2008. New Zealand Loan Rockstead's subsidiary, First Capital Gulf Harbour Limited, has to date been unable to secure full refinance for a loan held by the New Zealand subsidiary of Allco HIT Limited subsidiary, Strategic Finance Limited. The First Capital Gulf loan facility from Strategic is under a first mortgage with a guarantee from Rockstead. An independent valuer, valued the property at November 16, 2007, at NZ$23.8 million. The Strategic loan is approximately NZ$13.53 million. The proposed incoming funder received similar valuation in April 2008 for NZ$22.2 million. Strategic have agreed to allow Rockstead and its Singapore majority shareholders until July 24, to provide a firmer full funding proposal to Strategic. Strategic had previously served a statutory demand on Rockstead that expired on July 18, 2008. Prior to this date, a full funding proposal with a construction facility was obtained from an Australian based financier by First Capital Gulf. However, with the continuing deterioration of the Australian and New Zealand credit market, coupled with the collapse of approximately 22 finance companies in New Zealand, the proposed incoming funder could only provide a refinance amount which is less than the amount needed for full refinance. First Capital Gulf and Rockstead have been working to obtain refinance for the Strategic loan and to complete the creation of individual lots to advance the property for sale. The subdivision of lots of the property substantially increases the property value to NZ$37 million under the valuation made in April 2008 and reduced the overall loan to valuation ratio's to assist with the sale. First Capital Gulf, Rockstead and its majority Singaporean shareholders are continuing to pursue refinancing options despite the harsh market conditions. Rockstead's Singaporean majority shareholders continue to provide financial support to Rockstead. About Rockstead Financial Based in Subiaco, Australia, Rockstead Financial Services Limited (ASX:RKS), formerly First Capital Group Limited, acts as an investor in a range of businesses in the funds management, property development and lending sectors. On Feb. 8, 2007, the company acquired a 30% interest in Explorer Group Limited (EGL). On May 24, 2007, the company acquired a further 10% interest in EGL bringing the company’s total shareholding in EGL to 40%. Subsequent to June 30, 2007, the company sold its 40% shareholding in EGL to Ascalon Capital Managers Limited. Some of its subsidiaries include First Capital Securities Limited, First Capital Services Pty Ltd, First Capital Investments Pty Ltd, First Capital New Zealand Limited and TaxBreak Calculators Pty Ltd. SOCAMP PTY: Member's Final Meeting Set for August 4 --------------------------------------------------- Michael Scales, Socamp Pty Ltd's estate liquidator, will meet with the company's members at 11:00 a.m. on Aug. 4, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Michael Scales Ernst & Young 8 Exhibition Street Melbourne VIC 3000 Australia Telephone: (03) 9288 8000 ST GEORGE: ACCC Seeks Further Response on Merger Issues ------------------------------------------------------- The Australian Competition and Consumer Commission issued a Statement of Issues on the proposed acquisition of St George Bank Limited by Westpac Banking Corporation. The Statement of Issues seeks further information on certain competition issues which have arisen from the ACCC's market inquiries to date. The ACCC said it invites further submissions from the market by Aug. 6, 2008. To allow for submissions in response to the Statement Issues, the ACCC's final decision date will be deferred until Aug. 20, 2008. In a regulatory filing, St George said that the statement of issues is an important step in the merger process and the company looks forward to working with the ACCC to resolve the issues raised. Westpac Merger Proposal As reported in the Troubled Company Reporter-Asia Pacific on May 12, 2008, Westpac's merger proposal states that: * All Westpac and St.George brands, including Bank SA, and branch/ATM networks would be retained. The intention is that there will be no net reduction in branch or ATM numbers. The focus will be on investing more in front-line services; * The combined 10 million customers would benefit from an enhanced offering in terms of product range, expanded distribution and financial strength while preserving their relationships with employees, products, customer touchpoints and branding; and * Shareholders would own the premier AA rated financial institution in Australia, with leading market positions across key lines of business, and share in the benefits of substantial revenue synergies going forward. Westpac also outlined that the combined business would be a market leader in Australia. Specifically, St George and Westpac would be: * Australia's leading provider of home lending, with a market share of 25% * Australia's largest wealth platform provider with funds under administration of AU$108 billion St George's Board of Directors has indicated their intention to recommend shareholders' approval of the proposal. St George is being advised by UBS as financial adviser and Allens Arthur Robinson as legal adviser. Westpac has engaged Caliburn Partnership as financial adviser and Gilbert + Tobin as legal adviser. About Westpac Headquartered in Sydney, New South Wales, Australia -- http://www.westpac.com.au/-- Westpac Banking Corporation provides a range of banking and financial services, including retail, commercial, and institutional banking, as well as wealth management services to individuals and business customers in Australia, New Zealand, and the Pacific region. About St George Bank Headquartered in Kogarah, New South Wales, Australia -- http://www.stgeorge.com.au-- Bank Limited is a banking company. The Company operates in four business segments: Retail Bank (RB), Institutional and Business Banking (IBB), BankSA (BSA) and Wealth Management (WM). RB is responsible for residential and consumer lending, provision of personal financial services including transaction services, call and term deposits, small business banking and financial planners. This division manages retail branches, call centers, agency networks and electronic channels, such as electronic funds transfer at point of sale (EFTPOS) terminals, automated teller machines (ATMs) and Internet banking. On September 28, 2007, it disposed of its 100% interest in Scottish Pacific Business Finance Holdings Pty. Limited. * * * As reported in the Troubled Company Reporter-Asia Pacific on May 13, 2008, Moody's Investors Service reviewed, with direction uncertain, the ratings of St George Bank. It is rated Aa2 for deposits and senior debt, Prime-1 for short-term obligations and carries a bank financial strength rating (BFSR) of B. In addition, Fitch Ratings placed St George Bank Limited's 'B' Individual Rating and 'BB+' Support Rating Floor on Rating Watch Positive. TRONOX INC: Lenders Waive Leverage Ratio Financial Covenant ----------------------------------------------------------- Tronox Incorporated received approval from its lenders for an amendment to its senior secured credit facility. The agreement was entered among Tronox Incorporated, Tronox Worldwide LLC, several banks and other financial institutions. Lehman Brothers Inc. and Credit Suisse served as joint lead arrangers and joint bookrunners. ABN AMRO Bank N.V. served as syndication agent, while JPMorgan Chase Bank N.A. and Citicorp USA Inc. served as co-documentation agents. Lehman Commercial Paper Inc. acted as administrative agent. As a result of increases in process chemical, energy and transportation costs and production difficulties the company experienced in the second quarter, combined with the impact of the weak U.S. economy, Tronox had requested and received approval for a waiver to its leverage ratio financial covenant for the 2008 second quarter and subsequently requested the amendment to its leverage ratio financial covenant for the remainder of the year. These are the amended leverage ratios: Leverage Ratio -------------- Three Months Ended New Previous ------------------ --- -------- June 30, 2008 5.20x 4.90x Sept. 30, 2008 5.55x 4.90x Dec. 31, 2008 5.35x 4.90x A full text copy of the third amendment to credit agreement and second amendment to guarantee and collateral agreement is available for free at http://ResearchArchives.com/t/s?2fc9 Tronox remains focused on reducing costs and increasing prices. In the third quarter, the company is continuing to see a trend of further price increases being implemented in all three regions of the world, which it believes will help offset ongoing titanium dioxide industry cost increases. There is no assurance, however, that these pricing trends will offset continuing cost increases that the company is unable to predict and that depend on numerous factors beyond its control. Tronox continues to evaluate all strategic alternatives to improve the business, including development opportunities, mitigation of legacy liabilities, capital restructuring and land sales. About Tronox Incorporated Headquartered in Oklahoma City, Tronox Incorporated (NYSE:TRX) -- http://www.tronox.com/-- is a producer and marketer of titanium dioxide pigment. Titanium dioxide pigment is an inorganic white pigment used in paint, coatings, plastics, paper and many other everyday products. The company's five pigment plants, which are located in the United States, Australia, Germany and the Netherlands, supply performance products to approximately 1,100 customers in 100 countries. In addition, Tronox produces electrolytic products, including sodium chlorate, electrolytic manganese dioxide, boron trichloride, elemental boron and lithium manganese oxide. ========= C H I N A ========= CHINA EASTERN: Denies Merger Talks with Shanghai Airlines --------------------------------------------------------- China Eastern Airlines denied rumors that it is in talks with smaller-rival Shanghai Airlines on a possible merger deal, Fang Yan of Reuters News reports. However, Zhang Na of Caijing.com News writes that a source said the Chinese government is discussing a possible merger between the two airlines. The source told Caijing that the current discussion is taking place between government agencies, adding that two companies have yet to take part. Caijing News relates that another industry insider said the Shanghai government might be considering the merger as a means to boost the city's aviation industry. Shanghai Airlines, Reuters notes, said that neither it nor its state-run parent had taken any action on a major transaction that would be related to restructuring in the country's aviation industry. Meanwhile, according to Shanghai Daily News, China Eastern and Shanghai Air's jumped on July 23, on speculation that the government may merge the two airlines. China Eastern jumped 4.16% to CNY7.77 (US$1.14) per share in Shanghai and Shanghai Airlines gained 4.13% to CNY6.56, while the Shanghai Composite Index lost 0.29% to 2,837.85 points. Moreover, the Daily notes that the tie-up would consolidate the two carriers' dominance of the local aviation market with China Eastern's 40% share and Shanghai Airlines' 15% share. However, China Eastern may face a more complicated situation as it remains in cooperation with Singapore Airlines, the same report says. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 10, 2008, nearly 78% of China Eastern shareholders earlier rejected a bid by Singapore Airlines and Temasek Holding Pte Limited, to buy a minority stake in China Eastern after rival Air China and its parent, China National Aviation Corp., pledged a higher offer. However, on Feb. 25, China Eastern rejected Air China's proposal and pledged to instead continue seeking another strategic investor. About China Eastern Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. * * * On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. Fitch said the outlook on the IDRs is stable. On November 16, 2005, Xinhua Far East China Ratings gave the company a BB+ issuer credit rating with a stable outlook. All ratings still hold to date. CHINA EASTERN: Taifook Securities Keeps Airline's "Buy" Rating -------------------------------------------------------------- Taifook Securities has maintained its "buy" rating for China Eastern Airlines, but down adjusted its target price from HK$5.0 to HK$3. 5, Xinhua News reports. The broker, Xinhua News relates, pointed out in a report that constant rise of jet fuel price has brought challenges to the airline's operation. According to Xinhua News, Taifook Securities noted that short- term stimulation factors for China Eastern include possible share participation of Singapore Airlines and Temasek or capital injection from parent company of Air China. Taifook Securities deemed that considering the leading status of China Eastern in Shanghai's aviation market, and the hub function of Shanghai in China, profitability of China Eastern has a large rising space, Xinhua News notes. About China Eastern Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. * * * On April 28, 2006, Fitch Ratings downgraded China Eastern's foreign currency and local currency issuer default ratings to B+ from BB-. Fitch said the outlook on the IDRs is stable. On November 16, 2005, Xinhua Far East China Ratings gave the company a BB+ issuer credit rating with a stable outlook. All ratings still hold to date. GAMMA PHARMA: LL Bradford & Co Expresses Going Concern Doubt ------------------------------------------------------------ Las Vegas-based L.L. Bradford & Company, LLC, raised substantial doubt about the ability of Gamma Pharmaceuticals, Inc., to continue as a going concern after auditing the company's financial statements for the year ended March 31, 2008. The auditor said that the company's current liabilities exceed current assets and has incurred significant losses during the development stage. Gamma Pharmaceuticals reported a net loss of US$3,795,571 on total revenues of US$197,840 for the year ended March 31, 2008, as compared with a net loss of US$2,353,884 on zero revenue in the prior year. At March 31, 2008, the company has an accumulated loss of around US$6,404,224. The company's current liabilities exceed its current assets by US$660,028 as of March 31, 2008. Management Statement Management related that the company's continuation as a going concern is dependent upon its ability to obtain additional financing or sale of its common stock as may be required and ultimately to attain profitability. As of March 31, 2008, the company hadUS$71,209 in cash. Management plans to raise additional equity capital to begin executing its business plan, but there can be no assurance that the company will be able to raise such funds. Even if the company is able to raise additional capital, as it continues to implement its plan to expand into additional markets, the company will experience increased capital needs and it will not have enough capital to fund its future operations without additional capital investments. "If we cannot obtain initial or additional funding, we may be required to limit our marketing efforts; and decrease or eliminate capital expenditures. Such reductions could materially adversely affect our business and our ability to compete," management said. Balance Sheet At March 31, 2008, the company's balance sheet showed US$6,907,378 in total assets,US$1,524,942 in total liabilities, and US$5,382,436 in total stockholders' equity. The company's consolidated balance sheet at March 31, 2008, showed strained liquidity with US$284,564 in total current assets available to pay US$944,592 in total current liabilities. A full-text copy of the company's 2008 annual report is available for free at http://ResearchArchives.com/t/s?2ff2 About Gamma Pharmaceuticals Gamma Pharmaceuticals, Inc. (OTC BB: GMPM.OB) -- http://www.gamma-pharma.com/-- operates as a marketing, brand management, and product formulation company. The company focuses on the formulation, marketing and sale of vitamins and nutriceuticals, over the counter pharmaceutical products, and personal care products in the Peoples Republic of China, Hong Kong, Taiwan, and the United States. Its product formulations are based on its proprietary Gel Delivery Technology' and are marketed and sold as wellness products. The company offers products under the BrilliantChoice, Savvy, Jugular Energy Products, and IceDrops. It also manufactures house brands for retail accounts. The company, formerly known as Sunburst Pharmaceuticals, Inc., was founded in 1993 and is headquartered in Las Vegas. SINO-FOREST: Moody's Affirms Ba2 Senior Unsecured Rating -------------------------------------------------------- Moody's Investors Service has affirmed the Ba2 senior unsecured rating of Sino-Forest Corporation's (Sino-Forest) US$300 million convertible notes, and removed the rating from its provisional status, following the issuance's completion. At the same time, Moody's has affirmed the company's Ba2 corporate family rating. The outlook for the ratings is stable. Sino-Forest is a holding company listed in Toronto, Canada. It is engaged in forestry ownership and plantation management in China as well as the sale of timber, wood logs and other wood products in that country. SPECTRUM BRANDS: Moody's Confirms Caa1 Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service confirmed Spectrum Brand's Caa1 corporate family rating but downgraded its probability of default rating and revised its rating outlook to negative following the recent announcement that the company was unable to obtain the consent of its senior lenders to complete the proposed sale of its pet division to Salton, Inc. At the same time, the senior secured credit facility rating was upgraded to B1 from B2 and the senior subordinated notes rating was confirmed at Caa3. These rating actions conclude a review for possible downgrade initiated on May 22, 2008. In 2006, Spectrum initiated an asset sale strategy aimed at improving the company's capital structure and profitability. "The downgrade in the probability of default rating and change in the rating outlook to negative principally reflects Moody's belief that Spectrum's inability to sell either the Home & Garden business or the Pet business increases the probability of a default as its financial covenants continue to step down" said Kevin Cassidy, Senior Credit Officer, at Moody's Investors Service. The negative outlook also reflects Moody's view that ultimate recovery in a possible debt restructuring, which is considered above average now, could diminish over time if the company's operating performance deteriorates due to the continuing weakness in consumer spending. Spectrum's Caa1 corporate family rating is driven by its very high leverage at almost 10x (adjusted debt/EBITDA), weak interest coverage of a little over 1x (EBITA/interest), and limited financial flexibility. The rating also reflects high raw material costs, exposure to volatile zinc and nickel prices, competition from well capitalized companies across most business lines, and the weather dependency of the home and garden business. The rating is supported by Spectrum's portfolio of recognized brands, strong market positions in many product categories, long-standing relationships with key retailers, an improved cost structure following restructuring efforts that were implemented in 2006, and continued favorable trends in Latin America and the pet supply, battery and personal care businesses. The B1 rating of the senior secured credit facility reflects a Caa2 PDR and a 13% LGD point estimate and the Caa3 rating of the senior subordinated notes reflects a Caa2 PDR and 62% LGD point estimate. Despite a one notch downgrade of the PDR, the senior secured credit facility was upgraded by one notch to B1 and the senior subordinated notes were confirmed at Caa3 due to Moody's expectation of a higher than average recovery in a possible default scenario. Moody's subscribers can find additional information in the Spectrum's Credit Opinion published on Moodys.com. The following ratings were confirmed/assessments revised: Corporate family rating at Caa1; -- US$700 million 7.375% senior subordinated bonds due 2015 at Caa3 (LGD4, 62% from LGD5, 83%); -- US$350 million variable rate toggle senior subordinated notes due 2013 at Caa3 (LGD4, 62% from LGD5, 83%); The following rating was upgraded/assessment revised: -- US$1.55 billion senior secured credit facility due 2013 to B1 (LGD 2, 13%) from B2 (LGD2, 29%); The following rating was downgraded: -- Probability-of-default rating to Caa2 from Caa1 About Spectrum Brands Headquartered in Atlanta, Georgia, Spectrum Brands Inc. (NYSE: SPC) -- http://www.spectrumbrands.com/-- is a supplier of consumer batteries, lawn and garden care products, specialty pet supplies, shaving and grooming products, household insect control products, personal care products and portable lighting. The company's European unit, Rayovac Europe GmbH, is headquartered in Sulzbach, Germany. Outside the United States, the company also has manufacturing facilities in Brazil, Columbia and China. ZIRCON FINANCE: Fitch Cuts Rating on US$15MM Notes to BB from A --------------------------------------------------------------- Fitch Ratings has downgraded the rating on Zircon Finance Limited series 2007-8 US$15 million notes due March 2017 to 'BB' from 'A', removed it from Rating Watch Negative and simultaneously withdrawn the rating. The transaction is a synthetic corporate CDO, managed by Lion Global Investors Limited, which references a portfolio of primarily investment grade corporate obligations. Fitch received written notification that the transaction was restructured on 18 July 2008, and that no ongoing portfolio information will be provided to the agency after this date. The agency's policy on withdrawing ratings is to take into consideration whether it has access to sufficient information in assessing the credit quality of the notes. In this case, as Fitch has been notified that future portfolio information will not be provided, it has decided to withdraw the ratings on these notes. Since the notes were placed on RWN on May 16, 2008, the transaction has been restructured with 30% of the portfolio being substituted with generally higher rated entities. Based on the latest portfolio information available to the agency, dated July 18, 2008, the portfolio's weighted average rating has improved to 'BBB' from 'BBB'/ 'BBB-' at the RWN review. In addition, the credit enhancement level has been increased to 5.85%, from 5.06% at the RWN review. The key drivers of this transaction's credit risk as of the restructuring date included the 15% of the restructured portfolio that is rated below investment grade compared with 5% at closing on May 23, 2007, with 2% in the 'CCC' rating category, 1% in the 'B' rating category and 12% in the 'BB' rating category. Also, 9% of the portfolio was on RWN and 27% with a Negative Outlook. The portfolio also has industry concentration of 50% in the three largest industries, made up of 38% in Banking & Finance, 6% in Retail (General), and 5% in Real Estate. The portfolio was geographically concentrated in the United States at 51%. Given Fitch's view of concentration and the credit quality of the portfolio, the credit enhancement level for the transaction is not sufficient to justify the current rating of the notes. Fitch released its updated criteria on April 30, 2008 for Corporate CDOs and at that time, noted it would be reviewing its ratings accordingly to establish consistency for existing and new transactions. As part of this review, Fitch makes standard adjustments for any names on RWN or Negative Outlook, reducing such ratings for default analysis purposes by two and one notch, respectively. Fitch has previously noted that its review will be focused first on ratings most exposed to risks it has highlighted in its updated criteria. As such, the transaction was placed on RWN on May 16, 2008. As previously indicated, resolution of the Rating Watch status depends on any plans managers/arrangers may choose to modify either the structure or the portfolio. In this case, the arranger has restructured the transaction and the amended transaction documentation was executed with noteholders' approval on July 18, 2008. ZTE CORP: Plans to Penetrate Japan's WCDMA Market ------------------------------------------------- ZTE Corporation is setting its eye on strategically penetrating Japan's WCDMA market as it formalizes an agreement signed with a local Mobile Virtual Network Operator (MVNO) in mid-June this year. The company recently entered into an alliance with Japan Communications to supply the highly competitive 3G market in Japan with WCDMA data cards starting next month. In a press event held in conjunction with the company's first ever participation at EXPO Comm Wireless Japan 2008, the company unveiled initial strategic steps on how the company plans to address the needs of highly demanding local 3G subscribers. ZTE considers the co-operation another significant milestone in line with its corporate vision of playing a key role in the global high-end 3G industry. "Japan is among the highly advanced markets in the world with sophisticated 3G infrastructure. In collaboration with our local partner, Japan Communications, we are laying down a solid foundation to provide local telecom customers with comprehensive range of advanced 3G network services," said Qian Qiang, President, East/Southeast Asia Region, ZTE Corporation. The shipment of WCDMA data cards to the country is our first step to address the local market requirements. It is also a valuable opportunity to enhance ZTE's global positioning in the telecom industry." At the EXPO Comm Wireless Japan 2008, ZTE will be showcasing state-of-the art 3G solutions together with other global leading telecom service providers and Japan's well-known telecom carriers, such as NTT DoCoMo, KDDI and WILLCOM. Specifically, ZTE will demonstrate its advanced wireless and mobile services including a full range of LTE/SDR, WiMAX and 3G technologies. An annual event that has been running for 13 consecutive years, EXPO Comm Wireless Japan is one of the major trade shows in Japan focusing on the latest trends and development of the local telecommunication and mobile phone industry. ZTE has been creating impressive waves in the telecom industry worldwide. As part of its Multinational Telecom Operator (MTO) strategy targeting high-end telecom market, the company has been establishing close partnership with well-known telecom carriers in Western Europe and North America. As the world's 6th largest WCDMA provider, as well as Sprint's biggest WiMAX terminal partner, ZTE has supplied 3G terminal products to more than 20 countries in the world including UK, Italy, Canada, Spain, Australia and United States. The company recorded a sterling business performance overseas last year, with sales growth in Europe and America exceeding 155%. ZTE also continuous to forge agreements on terminal and system services with global telecom service providers such as Vodafone, Hutchison, France Telecom and Telefonica. Currently, ZTE operates in 135 countries worldwide, attesting its leading position and recognition in the global telecom device market. About ZTE Corp. Headquartered in Shenzhen, China, ZTE Corphas established close partnerships with over 500 operators in more than 120 countries, and has completed several large-scale backbone transmission network projects in different countries. Its optical networking products have been widely deployed by several countries and regions globally, such as Europe, Latin America, South Asia, Commonwealth of Independent States, Africa and Middle East. According to the latest statistics released by Ovum RHK, ZTE is ranked second in terms of global market share for LH Dense Wavelength Division Multiplexing (DWDM), with high potential of maintaining its positive growth in the market. * * * The Troubled Company Reporter-Asia Pacific reported on April 24, 2008, that Fitch Ratings affirmed ZTE Corporation's Long-term foreign currency and local currency Issuer Default Ratings at 'BB+'. The rating Outlook remains Stable. In December 2006, Fitch Ratings assigned ZTE Corp. Long-term foreign and local currency Issuer Default ratings of 'BB+'. The rating Outlook is Stable. ZTE CORP: To Issue CNY400 Million Short-Term Financial Bills ------------------------------------------------------------ ZTE Corporation will issue CNY400 million short-term financial bills, Reuters reports. According to the report, Industrial and Commercial Bank of China will serve as the main underwriter. Headquartered in Shenzhen, China, ZTE Corphas established close partnerships with over 500 operators in more than 120 countries, and has completed several large-scale backbone transmission network projects in different countries. Its optical networking products have been widely deployed by several countries and regions globally, such as Europe, Latin America, South Asia, Commonwealth of Independent States, Africa and Middle East. According to the latest statistics released by Ovum RHK, ZTE is ranked second in terms of global market share for LH Dense Wavelength Division Multiplexing (DWDM), with high potential of maintaining its positive growth in the market. * * * The Troubled Company Reporter-Asia Pacific reported on April 24, 2008, that Fitch Ratings affirmed ZTE Corporation's Long-term foreign currency and local currency Issuer Default Ratings at 'BB+'. The rating Outlook remains Stable. In December 2006, Fitch Ratings assigned ZTE Corp. Long-term foreign and local currency Issuer Default ratings of 'BB+'. The rating Outlook is Stable. =============== H O N G K O N G =============== AIRSTAFF HONG KONG: Wind-Up Petition Hearing Set for August 13 -------------------------------------------------------------- The High Court of Hong Kong will hear a petition to have Airstaff Hong Kong Limited's operations wound up on August 13, 2008, at 9:30 a.m. The plaintiff's solicitors are: Messrs. Laracy Gall Dina House, 8th Floor Ruttonjee Centre 11 Duddell Street Central, Hong Kong Telephone: 2836 0555 Facsimile: 2836 0777 BEST SMOOTHNESS: Wind-Up Petition Hearing Set for September 10 -------------------------------------------------------------- The High Court of Singapore will hear a petition to have Best Smoothness Investment Limited's operations wound up. Lau Po Yee filed the petition against the company on July 2, 2008. DORIGHT LIMITED: Subject to Profit Richness' Wind-Up Petition ------------------------------------------------------------- On June 4, 2008, Profit Richness Limited filed a petition to have Doright Limited's operations wound up. The petition will be heard before the High Court of Hong Kong on August 13, 2008, at 9:30 a.m. Profit Richness' solicitors are: Messrs. Winston Chu & Co. One Pacific Place Room 2006, 20th Floor 88 Queensway Hong Kong LEE SUN: Requires Creditors to File Claims by July 31 ----------------------------------------------------- The creditors of Lee Sun Lan Company Limited are required to file their proofs of debt by July 31, 2008, to be included in the company's dividend distribution. The company's liquidators are: Desmond Chung Seng Chiong Roderick John Sutton c/o Ferrier Hodgson Limited The Hong Kong Club Building, 14th Floor 3A Chater Road Hong Kong LUEN PAK: Creditors' Proofs of Debt Due on August 14 ---------------------------------------------------- The creditors of Luen Pak Investment Company Limited requires its creditors to file their proofs of debt by August 14, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 11, 2008. The company's liquidators are: Tam Chun Wan Tse Chiang Kwok, Nassar Wing On House Room 403, 4th Floor 71 Des Voeux Road Central, Hong Kong MEDA JEWELRY: Requires Creditors to File Claims by August 18 ------------------------------------------------------------ The creditors of Meda Jewelry Limited are required to file their proofs of debt by August 18, 2008, to be included in the company's dividend distribution. The company's Liquidators are: Chow Yuen Yi Fung Chi Keung CIG Building, Room 1406 141 Des Voeux Road Central Hong Kong PAK MAN: Appoints Wai and Fun as Liquidators -------------------------------------------- On July 4, 2008, the High Court of Hong Kong appointed Li Man Wai and Tsang Lai Fun as the liquidators of Pak Man Engineering Company Limited. The Liquidators can be reached at: Li Man Wai Tsang Lai Fun Raymond Li & Co. CPA Tai Yau Building Room 1001, 10th Floor Wanchai, Hong Kong Telephone: (852) 2889-8833 Facsimile: (852) 2889-8433 WAI YIP: Li Man Wai and Tsang Lai Fun -------------------------------------- On July 4, 2008, the High Court of Hong Kong appointed Li Man Wai and Tsang Lai Fun as the liquidators of Wai Yip Transportation Company Limited. The Liquidators can be reached at: Li Man Wai Tsang Lai Fun Raymond Li & Co. CPA Tai Yau Building Room 1001, 10th Floor Wanchai, Hong Kong Telephone: (852) 2889-8833 Facsimile: (852) 2889-8433 ========= I N D I A ========= ANDREW YUL: To Divest 26.2% Stake in Tide Water Oil --------------------------------------------------- Andrew Yule & Company Ltd disclosed in a regulatory filing that the Board for Industrial & Financial Reconstruction, at its final order dated October 30, 2007, had directed the company to disinvest its shareholding in group companies namely Tide Water Oil Co. (India) Ltd., Phoenix Yule Ltd. and DPSC Ltd. Accordingly, the Department of Heavy Industry, Ministry of Heavy Industries & Public Enterprises had formed a Committee of Experts (CABOD) to disinvest Andrew Yule's holding in Tide Water Oil Co. (India) Ltd as per Department of Disinvestment (DOD) norms. The process of disinvestment is under process. The Economic Times reports that Andrew Yule is letting go of its 26.2% stake in Tide Water Oil and is expected to be soon inviting expressions of interest for the divested stake. Sources told the Times that major oil companies like Reliance Industries Limited, Total and Chevron were interested in buying the stake. According to the Times, Chevron holds 22.1% stake in Tide Water through a subsidiary called Four Star Oil & Gas -- a listed firm wherein Andrew Yule & Company and DPSC hold 26.2% and 1.5% equity stakes respectively. Other stakeholders in Tide Water are LIC, United India Insurance, Madanlal, Maryada Barter, Santosh Industries and Arion Commercial, the Times says. Meanwhile, to reduce the company's accumulated losses, Andrew Yule reduced the value of its equity shares from Rs 10/- to Rs 2/-. The record date for the capital reduction was April 4, 2008. Andrew Yule incurred successive losses from the year 2000-2001 and the company's net worth was completely eroded in the year 2001-02. Accordingly, the company made a reference to BIFR under Section 15(1) of the Sick Industrial Companies (Special Provision) Act, 1985 in November, 2002. The first hearing was held on September 20, 2004 when Andrew Yule was declared a “Sick Industrial Company” and IDBI Bank was appointed as the operating agency. For the year ended March 31, 2008, the company recorded its first net profit of Rs. 16.87 million on net sales of Rs. 1,648.59 million. This compares to a net loss of Rs. 281.95 million on net sales of Rs. 1,365.67 million in the year ended March 31, 2007. The FY 2007 net loss was a huge decline from the FY 2006 net loss of Rs. 789.90 million. About Tide Water Oil Tide Water Oil Co. (India) Ltd. is engaged in producing lubricants. The company’s plants are set up in Royapuram (Chennai), Deonar (Mumbai), Silvassa (Dadra & Nagar Haveli) and Faridabad (Haryana). The company has the capability to manufacture products required for both automotive and industrial applications. The company has also entered into technical collaboration with Nippon Oil Corporation, Japan for manufacture of ENEOS range of engine lubricants. About Andrew Yule Headquartered in Kolkata, India, Andrew Yule & Co. Ltd. -- http://www.andrewyule.com/-- is a manufacturer and distributor of machinery, including industrial fans and blowers, air pollution control systems and tea processing machinery. BROADCAST INITIATIVES: Share Capital Increased to Rs.30 Crores -------------------------------------------------------------- Broadcast Initiatives Ltd's members have agreed to increase the company's authorised share capital from Rs 25 Crores to Rs 30 Crores. The members also authorized the company's Board to issue and allot 60 lacs equity shares of Rs 10/- each of the company at an issue price of Rs 36.50 to HDIL Infra Projects Pvt Ltd. In June 2008, HDIL Infra, Mr. Rakesh Kumar Wadhawan and Mr. Sarang Wadhawan, together with Mr. Waryam Singh and Mr. Ashok Kumar Gupta, offered to acquire up to 50,62,800 equity shares or 20% of Broadcast Initiatives' post issue capital at a price of Rs 36.50 per fully paid up shares payable in cash. The offer is expected to open on August 14, 2008, and close on September 2, 2008. Saffron Capital Advisors Pvt Ltd acted as manager to HDIL Infra's offer. Indiantelevision reports that the Rs 36.50/share offer is the same price that HDIL is paying to acquire 24 per cent stake in Broadcast Initiatives through a preferential allotment. According to the report, Broadcast Initiatives is issuing a preferential allotment of 6 million shares, amounting to 24 per cent stake, to HDIL, which what triggered the open offer, as per regulatory norms. Indiantelevision says HDIL is also taking 51 per cent stake in two of Broadcast Initiatives' subsidiaries -- Sri Adhikari Brothers Media Ltd, which operates Marathi general entertainment channel Mi Marathi, and Technocraft Media Pvt Ltd which will launch a Bhojpuri channel. Headquartered in Mumbai, India, Broadcast Initiatives Limited -- http://www.liveindia.tv/-- formerly Sri Adhikari Brothers News & Television Network Limited, is a media firm. The company owns the Hindi language television news channel Janmat, which was launched on April 30, 2006. The company is a group company of Sri Adhikari Brothers Television Network Limited. * * * For the year ended March 31, 2008, the company incurred a net loss of Rs.536.63 million on net sales of Rs. 330.15 million compared to a net loss of Rs.131.79 million on net sales of Rs. 134.99 million for the year ended March 31, 2007. GENERAL MOTOR: Edward Altman's Z-score Model Predicts Bankruptcy ---------------------------------------------------------------- Edward Altman, a finance professor at New York University's Stern School of Business, sees a 46% chance that General Motors Corp. and Ford Motor Co. will default within five years, Bloomberg News' Greg Miles and Caroline Salas report. Mr. Altman, in 2005, had said GM had a 47 percent chance of default within five years. Mr. Altman, who created the Z-score mathematical formula that measures bankruptcy risk, said in an interview with Bloomberg Television that his model shows that these companies are "on the verge of bankruptcy." Basing on the companies' finances at the end of the first quarter, the Z-scores for GM and Ford give both a bond rating equivalent to a CCC ranking, he said, according to the report. "Both are in very serious shape and the markets reflect that," Mr. Altman said. GM, though, is in slightly worse condition than Ford, according to him. Ford has said it had access to $40.6 billion in funds as of March 31, including credit lines, the report noted. But still, according to Mr. Altman, he "would not put money with GM right now because the downside is so great relative to the upside, relative to the yield," according to the report. "Your downside is probably 60 percent on the debt. The risk reward ratio is pretty poor," Mr. Altman said referring to GM. The report noted that GM posted a $38.7 billion loss in 2007, the biggest in its 100-year history, and hasn't posted a profit since 2004. GM is fending off rumors that it could file for bankruptcy. GM Chief Executive Officer Rick Wagoner has assured that the company has the ability to raise cash. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Corporation offers products under the Chevrolet brand in India through its wholly owned subsidiary, General Motors India. GM India has 95 sales points and over 110 service centers. At March 31, 2008, GM's balance sheet showed total assets of $145,741,000,000 and total debts of $186,784,000,000, resulting in a stockholders' deficit of $41,043,000,000. Deficit, at Dec. 31, 2007, and March 31, 2007, was $37,094,000,000 and $4,558,000,000, respectively. * * * As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corporation and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. economy. Standard & Poor's Ratings Services is placing its corporate credit ratings on the three U.S. automakers, General Motors Corp., Ford Motor Co., and Chrysler LLC, on CreditWatch with negative implications, citing the need to evaluate the financial damage being inflicted by deteriorating U.S. industry conditions —largely as a result of high gasoline prices. Included in the CreditWatch placement are the finance units Ford Motor Credit Co. and DaimlerChrysler Financial Services Americas LLC, as well as GM's 49%-owned finance affiliate GMAC LLC. As related in the Troubled Company Reporter on June 5, 2008, Standard & Poor's Ratings Services said that its ratings on General Motors Corp. (B/Negative/B-3) are not immediately affected by the company's announcement that it will cease production at four North American truck plants over the next two years. These closures are in response to the re-energized shift in consumer demand away from light trucks. GM previously said only one shift was being eliminated at each of the four truck plants. Production is being increased at plants producing small and midsize cars, but the cash contribution margin from these smaller vehicles is far less than that of light trucks. JABALPUR MUNICIPAL: Fitch Puts 'BB+(ind)' Nat'l LT Issuer Rating ---------------------------------------------------------------- Fitch Ratings has assigned a National Long-term Issuer rating of 'BB+(ind)' to Jabalpur Municipal Corporation. The Outlook is Stable. The rating reflects the less-diversified economic base of the city, the constricted revenue generating ability, relatively poor service delivery mechanisms and JabMC's constraints in servicing its future planned debt with current revenue streams. The Stable Outlook reflects the gradual expansion of the city's economic profile including the growth in the IT and Information Technology Enabled Services sectors, and the state of Madhya Pradesh's initiatives on urban infrastructure reforms. JabMC has a debt of INR80 million but this is expected to rise steeply because of its proposed capex plans envisaged under the Jawaharlal Nehru National Urban Renewal Mission program. JabMC plans to secure a INR2.62 billion long term loan from the Asia Development Bank, through the government of Madhya Pradesh, to augment water supply and construct newer environmental infrastructure. While Fitch feels that these projects are essential, JabMC will be debt-trapped if corresponding user charges are not raised to, at least, break-even levels. The outstanding debt to current revenue was a modest 50% as at FYE07. However due to the proposed increase in debt, the ratio is expected to deteriorate sharply. The rating takes into account this weakening of the base line financials and other indicators. The size of the capital investment plan is INR19292 million, out of which JabMC will have to mobilize INR5788 million as its share of contribution. JabMC has planned to invite the private sector to partake in the investment plan. The agency feels that since the cost recovery on amenities and services provided to citizens is low, JabMC will have to strictly adhere to cost recovery principles before it succeeds in attracting large private sector investments in civic amenities. JabMC's civic amenities, especially water supply, are poorly managed, with a net supply of less than 110 litres per capita demand as against the Central Public Health and Environmental Engineering Organization's norm of 135 lpcd; cost recovery on the service is a poor 30%. There is a complete absence of sewerage systems in the city. Property taxes, being the largest own sources of income, are characterized by poor collection efficiencies and the problem of unregistered properties. Aid grants form the major and single largest contributor to JabMC's total revenue income. On average from FY03-FY07, around 62% of the total income came from grants, out of which more than 50% was from compensation in lieu of octroi and other taxes collected by the state government. JabMC expects 10% growth of this income in future, but in Fitch's view it will be hard to meet this expectation given the CAGR of less than 8% over the last five years. Further, the government's actions in effecting greater decentralization and delegating revenue generation powers to the municipalities suggest that they are expected to be self-sustaining. In this scenario, the government may actually discourage municipalities from being dependent on it beyond basic contractual necessities like devolutions and compensations. In FY03, JabMC government grants were INR484.6 million, INR334.83 million in FY04 and INR490.58 million in FY05. This demonstrates that the JabMC has only increased its dependence on grants. NETWORK LTD: Board Approves Merger Share Exchange Ratio ------------------------------------------------------- Network Ltd's Board of Directors, at its meeting held July 22, 2008, approved a share exchange ratio in respect of in-principle merger of PPS Towers Pvt Ltd, Lorgan Consultants Pvt Ltd and Shrigan Investment Consultants Pvt Ltd with Network Ltd. The share exchange ratio is expected to be received shortly, from the valuer appointed for the said purpose. A Board Meeting will be held shortly to consider and approve a draft scheme of arrangement and swap ratio. The merger deal is part of scheme and write off losses against reserves/capital. Separately, in May, Mr. Ashok Sawhney and Mr. Avinash Chander Paliwal have been appointed as directors of the company. Mr. Ashok Sawhney was the chairman of Sawhney group of Industries, well known for the manufacturing of 'UNIK' & 'AAA' Brand quality of Wrist Watch Dials & other parts in the country. Mr. Sawhney holds key position as CEO Worldwide for Lifestyle brands 'Swiss Military' & 'Alpine Club' of Switzerland. Mr. Avinash Chander Paliwal is CEO and MD of Paliwal Group of Companies. The main business of the group is manufacturing and export of home textiles, terrry towels, organic towel, beach towel, wash towel, handloom products and woven besides having land bank in group companies. Paliwal group has been a leading player in textile business for over three decades and have received many awards for excelling in this field. The company's registered office has been moved from 416, World Trade Centre, Babar Road, in New Delhi to W-41, Okhla Industrial Area, Phase - II, in New Delhi. Network Limited engages in the retail business in Delhi, India. The company offers lifestyle products, such as watches, writing instruments, accessories, baggage, and garments; the swiss army knife; and kids wear and toys. As of March 31, 2007, it operated five showrooms. The company was incorporated in 1989 and is based in New Delhi, India. Network Limited is a part of Appu Ghar Group. * * * The company has been reporting consecutive annual net losses since March 31, 2005. Year Ended Net Loss ---------- -------- 31-Mar-08 Rs. 19.44 million 31-Mar-07 Rs. 2.44 million 31-Mar-06 Rs. 2.04 million 31-Mar-05 Rs. 1.60 million POLAR INDUSTRIES: Ends Polar Product Distributorship Deal --------------------------------------------------------- Polar Industries Ltd said it has terminated a distributorship agreement it entered into with M/s. Asia Pacific Brands India Ltd, Mumbai for the sale of Polar Products on non-exclusive basis. The company did not state reasons for the termination of the contract. Meanwhile, on June 28, 2008, Polar Industries' Board approved the issue and allotment of: -- 30,74,300 equity shares to Asset Reconstruction Company of India Ltd., as part conversion of their debts; and -- 4,00,000 convertible warrants to Eight Capital India (M) Ltd, a Mauritius based company. An annual general meeting has been scheduled on August 12, 2008 for the company's members to consider approval of the shares issue. The Board also approved closure of Roorkee Division, Uttaranchal, due to downsized operations and to curtail various other cost involved. Based in Uttar Pradesh, India, Polar Industries Ltd. manufactures electrical equipment including ceiling fan, monoblock pumps, FHP motors home appliances and lights. The company operates in three segments, namely, Fans, Light and Luminaries, Pumps and Appliances. * * * Polar Industries Ltd has been reporting net losses for the past four years. For the year ended March 31, 2008, the company incurred a net loss of Rs. 88.37 million. For the six months ended March 31, 2007, the company incurred a net loss of Rs. 235.34 million. For the year ended March 31, 2006, the company incurred a net loss of Rs. 397.34 million compared to a net loss of Rs. 78.94 million in the year ended March 31, 2005. TUTICORIN ALKALI: Extends Accounting Year Until March 31, 2009 -------------------------------------------------------------- Tuticorin Alkali Chemicals & Fertilisers Ltd's Board of Directors, at its meeting held July 23, 2008, inter alia, decided to extend the company's accounting year 2007-08 by six months, i.e. until March 31, 2009, subject to required approvals. Tuticorin Alkali Chemicals And Fertilisers Limited manufactures and sells soda ash, ammonium chloride, sodium bicarbonate, ammonium bicarbonate and bioproducts. The company operates in India. The company has been incurring consecutive quarterly losses since June 30, 2007. For the quarter ended June 30, 2008, the company incurred a net loss of Rs. 43.60 million compared to a net loss of Rs. 60.48 million in the quarter ended March 31, 2008. The company also incurred net losses of Rs. 62.31 million, Rs. 67.42 million and Rs. 66.06 million for the quarters ended Dec. 31, 2007, Sept. 30, 2007 and June 30, 2007, respectively. ================= I N D O N E S I A ================= BANK MANDIRI: Cuts 2008 Loan Growth Target to 18% ------------------------------------------------- PT Bank Mandiri Tbk has cut its loan growth target for this year to 18 percent from 22 percent due to weak global and domestic economic conditions, Reuters reports citing Bisnis Indonesia. According to Reuters, Mr. Martowardojo told Bisnis Indonesia that the slower loan growth was expected across the state bank's businesses, which include corporate, consumer and commercial lending. The report noted that the bank made a forecast in May that it was optimistic about achieving 22 percent loan growth despite higher inflation and a fuel price hike. About Bank Mandiri PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 7, 2007, that Fitch Ratings upgraded the Individual Rating of PT Bank Mandiri (Persero) Tbk (Mandiri) to 'C/D' from 'D', and its National Long-term rating to 'AA+ (idn)' from 'AA (idn)'. The outlook on the national rating remains stable. At the same time, Fitch affirmed the company's Long-term foreign and local currency Issuer Default ratings at 'BB-' with a Positive Outlook, Short-term IDR at 'B' and Support Floor at 'B+'. On Oct. 19, 2007, Moody's Investors Service raised Bank Mandiri's foreign currency senior/subordinated debt ratings to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit rating to B1 from B2. ========= J A P A N ========= AMPEX CORP: Court Okays Modifications to Plan, D/S Supplement ------------------------------------------------------------- Ampex Corp. disclosed in a regulatory SEC filing Friday, that on July 14, 2008, the United States Bankruptcy Court for the Southern District of New York granted the company and certain of its U.S. subsidiaries' motion dated July 9, 2008, for an order authorizing, among other things, certain modifications to their Third Amended Joint Chapter 11 Plan of Reorganization, and approved a proposed supplement to the Disclosure Statement relating to the Plan, and other related relief. The Plan was modified, among other things, to revise certain terms relating to lump sum cash payment elections by holders of unsecured claims and certain conditions precedent to consummation of the Plan. The Supplement contains a summary of the modifications made to the Plan. The Debtors plan to distribute the Plan and Supplement to, and to resolicit the votes of, the holders of unsecured claims affected by the modifications. Also on July 9, 2008, the Debtors entered into a Plan Support Agreement (PSA) with the Official Committee of Unsecured Creditors in the chapter 11 case. Under the PSA, the Committee has agreed to support the Plan and to urge holders of unsecured claims to vote to accept the Plan, among other things. A full-text copy of the First Modified Third Amended Joint Chapter 11 Plan of Reorganization, dated July 9, 2008, is available for free at http://researcharchives.com/t/s?2fcb A full-text copy of the Supplement to Disclosure Statement with Respect to First Modified Third Amended Joint Chapter 11 Plan of Reorganization, dated July 14, 2008, is available for free at: http://researcharchives.com/t/s?2fcc A full-text copy of the Plan Support Agreement dated as of July 9, 2008, among the Debtors and the Committee is available for free at http://researcharchives.com/t/s?2fce Headquartered in Redwood City, California, Ampex Corp. -- http://www.ampex.com/-- (Nasdaq:AMPX) is a licensor of visual information technology. The company has two business segments: Recorders segment and Licensing segment. The Recorders segment primarily includes the sale and service of data acquisition and instrumentation recorders (which record data and images rather than computer information), and to a lesser extent mass data storage products. The Licensing segment involves the licensing of intellectual property to manufacturers of consumer digital video products through their corporate licensing division. On March 30, 2008, Ampex Corp. and six affiliates filed for protection under Chapter 11 of the Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of New York (Case Nos. 08-11094 through 08-11100). Matthew Allen Feldman, Esq., and Rachel C. Strickland, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors in their restructuring efforts. The Debtors have also retained Conway Mackenzie & Dunleavy as their financial advisors. In its schedules of assets and liabilities filed with the Court, Ampex Corp. disclosed total assets of $9,770,089 and total debts of $82,488,054. The Debtors have nine foreign affiliates that are incorporated in seven countries -- one each in the United Kingdom, Japan, Belgium, Colombia and Brazil and two each in Germany and Mexico. With the exception of the affiliates located in the U.K. and Japan, none of the other foreign affiliates conduct meaningful business activity. As of March 30, 2008, none of the foreign affiliates have commenced insolvency proceedings. CAPCOM CO: Plans to Establish New Unit Through CE Europe, Ltd. -------------------------------------------------------------- Capcom Co. Ltd. has decided to establish a new sub-subsidiary, Capcom Entertainment France S.A.S, through its wholly owned subsidiary, CE Europe Ltd, Reuters reports. According to the report, Capcom Entertainment France, S.A.S will be engaged in the household game software's sale. Headquartered in Osaka, Japan, Capcom Co., Ltd. -- http://www.capcom.co.jp--is one of Japan's leading developers of home video-game software. The company also engages in arcade operations and arcade games sales businesses. Its consolidated sales in FYE3/2006 were JPY70.3 billion. The Troubled Company Reporter-Asia Pacific reported on Feb. 14, 2007, that Moody's Investors Service placed Capcom Co. Ltd.'s Ba2 senior unsecured long-term debt rating under review for possible upgrade. FORD MOTOR: Edward Altman's Z-score Model Predicts Bankruptcy ------------------------------------------------------------- Edward Altman, a finance professor at New York University's Stern School of Business, sees a 46% chance that General Motors Corp. and Ford Motor Co. will default within five years, Bloomberg News' Greg Miles and Caroline Salas report. Mr. Altman, in 2005, had said GM had a 47 percent chance of default within five years. Mr. Altman, who created the Z-score mathematical formula that measures bankruptcy risk, said in an interview with Bloomberg Television that his model shows that these companies are "on the verge of bankruptcy." Basing on the companies' finances at the end of the first quarter, the Z-scores for GM and Ford give both a bond rating equivalent to a CCC ranking, he said, according to the report. "Both are in very serious shape and the markets reflect that," Mr. Altman said. GM, though, is in slightly worse condition than Ford, according to him. Ford has said it had access to $40.6 billion in funds as of March 31, including credit lines, the report noted. But still, according to Mr. Altman, he "would not put money with GM right now because the downside is so great relative to the upside, relative to the yield," according to the report. "Your downside is probably 60 percent on the debt. The risk reward ratio is pretty poor," Mr. Altman said referring to GM. The report noted that GM posted a $38.7 billion loss in 2007, the biggest in its 100-year history, and hasn't posted a profit since 2004. GM is fending off rumors that it could file for bankruptcy. GM Chief Executive Officer Rick Wagoner has assured that the company has the ability to raise cash. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region, through Ford Japan Limited. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on March 28, 2008, Standard & Poor's Ratings Services said that the ratings and outlook on Ford Motor Co. and Ford Motor Credit Co. (both rated B/Stable/B-3) were not affected by Ford's announcement of an agreement to sell its Jaguar and Land Rover units to Tata Motors Ltd. (BB+/Watch Neg/--) for US$2.3 billion (before US$600 million of pension contributions by Ford for Jaguar-Land Rover). As reported in the Troubled Company Reporter on Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. As reported in the Troubled Company Reporter on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the United Auto Workers. NIPPON STEEL: Resumes Production at Kamaishi Works -------------------------------------------------- Nippon Steel Corp restarted steel output at its Kamaishi Works in northern Japan, after halting production for inspections following a strong earthquake, James Topham of Reuters reports. However, a spokesman told Reuters that the 149-megawatt coal- fired power plant at the same facility remained shut for an inspection. The company supplies all the power output from the plant to Tohoku Electric Power Co., the report relates. Headquartered in Tokyo, Nippon Sheet Glass Company, Limited -- http://www.nsg.co.jp-- Company operates in four business divisions. Its Glass and Construction Material division manufactures, processes and sells various types of glasses, such as float plate, polished wire, heat absorbing, heat reflecting, reinforced, laminated, double-layer, vacuum, fireproof, template, mirror and ornamental glass, as well as sashes. It also supplies construction materials, and interior accessories for stores. The Information and Electronics division offers optical products, fine glass products, industrial glass products, liquid crystal display (LCD) products and others. Its Glass Fiber division is engaged in the manufacture, processing and sale of special glass fiber products, air filter-related items and others. The Others division is involved in the facility engineering and the test analysis businesses, among others. * * * Nippon Sheet continues to carry Mikuni Credit Rating's "BB" rating. NIPPON STEEL: Raises Plate Prices to Offset Surging Energy Cost --------------------------------------------------------------- Nippon Steel Corp has raised prices of plate used by shipbuilders and machinery makers for the third time this year to pass along surging costs for energy, ore and other materials, Steel Guru News reports. Masato Suzuki, a company spokesman, told Guru News that steel plate sold through wholesalers on an immediate delivery basis will increase JPY10,000 per tonne on August 1st. Prices have jumped 50% since the quarter ended March, when the company said its average product price was JPY80,200 per tonne. Nippon SteeL raised spot plate-delivery prices by about 10% to JPY110,000 per tonne as of June, the report relates. That gain followed a JPY20,000 increase in April. About Nippon Sheet Headquartered in Tokyo, Nippon Sheet Glass Company, Limited -- http://www.nsg.co.jp-- Company operates in four business divisions. Its Glass and Construction Material division manufactures, processes and sells various types of glasses, such as float plate, polished wire, heat absorbing, heat reflecting, reinforced, laminated, double-layer, vacuum, fireproof, template, mirror and ornamental glass, as well as sashes. It also supplies construction materials, and interior accessories for stores. The Information and Electronics division offers optical products, fine glass products, industrial glass products, liquid crystal display (LCD) products and others. Its Glass Fiber division is engaged in the manufacture, processing and sale of special glass fiber products, air filter-related items and others. The Others division is involved in the facility engineering and the test analysis businesses, among others. * * * Nippon Sheet continues to carry Mikuni Credit Rating's "BB" rating. * S&P Sees 2 Japanese Transactions Affected by Zephyr Bankruptcy ---------------------------------------------------------------- Standard & Poor's Ratings Services said that only two loans related to failed real estate developer Zephyr Co. Ltd. are involved in Japanese CMBS transactions rated by S&P, based on information provided by servicers. On July 18, 2008, Zephyr filed with the Tokyo District Court for protection under the Civil Rehabilitation Law. The filing was accepted by the court on the same day, and a preservation order was issued. One loan (with a current outstanding balance of JPY1.77 billion) is sponsored by a wholly owned subsidiary of Zephyr. In addition, Zephyr is a master lessee for one property backing another loan (with a current outstanding balance of about JPY3.8 billion). The subsidiary has not filed for bankruptcy protection along with the parent. S&P will examine the impact of the Zepher bankruptcy filing on rated CMBS transactions based on information to be provided by servicers. For more information on the impact of credit risks on Japanese CMBS transactions, refer to the report "Impact Of Asset Manager And Sponsor Credit Risks On Japanese CMBS Transactions" published on April 9, 2008. ========= K O R E A ========= INTERLINE RESOURCES: HJ & Associates Raises Going Concern Doubt --------------------------------------------------------------- Salt Lake City-based HJ & Associates, LLC, raised substantial doubt about the ability of Interline Resources Corporation to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2007. The auditor reported that the company suspended a substantial portion of its operations in 2002 and subsequently has not generated revenues sufficient to cover its operation costs. As a result, the company, on a consolidated basis, has a stockholders' deficit and an accumulated deficit of US$12,505,643 at Dec. 31, 2007, The company has had limited operations since a fire destroyed its Well Draw Gas Plant in June 2002. Since the fire, the company has focused on finding financing to rebuild the Well Draw Plant and on settling litigation matters related to the fire. Management has obtained working capital primarily from debt financing and from the sale of idle property and equipment. The company is in the process of arranging other debt and equity financing with other sources. In addition, the company has formed the NorthCut Refining LLC and arranged financing to rebuild and operate its Well Draw Gas plant facility. The company anticipates NorthCut will commence commercial operations in the next few months, and the company anticipates that its share of management fees and cash distributions from NorthCut, after related debt obligations have been satisfied, will contribute significantly to the working capital of the company. Financials The company posted a net loss of US$42,121,590 on total revenues of US$62,069 for the year ended Dec. 31, 2007, as compared with a net loss of US$668,759 on total revenues of US$335,503 in the prior year. At Dec. 31, 2007, the company's balance sheet showed US$9,167,446 in total assets and US$11,608,717 in total liabilities, resulting in a US$2,441,271 stockholders' deficit. The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with US$301,172 in total current assets available to pay US$1,246,934 in total current liabilities. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?2fb7 NorthCut Refining LLC NorthCut Refining LLC was formed in July 2007 as a Wyoming limited liability company. Interline Resources contributed the Well Draw facility, including land, fixtures, equipment and all operating permits, receiving a 75% member interest in NorthCut. The parties who arranged financing for construction of the project received a 25% interest in NorthCut (PCG Midstream, LLC, 5% and NorthCut Holdings, LLC, 20%). Interline Resources is designated as manger, however, until the construction loan is repaid. PCG Midstream acts as a co-interim manger. NorthCut is the borrower and Private Capital Group, Inc., is the lender under the Construction Loan Agreement. NorthCut pledged all of its assets as collateral for the loan. Interline Resources executed a Guaranty Agreement and a Security Agreement, guaranteeing repayment of the loan, and pledging all of the assets of the company. The Promissory Note carries an interest rate of 24% per year due on Aug. 1, 2009. The Operating Agreement provides that 75% of the Available Cash each month will be paid to reduce the loan amount. Interline Resources receives the remaining 25% of available cash, and the funding group receives no distributions until after the loan has been paid back. NorthCut and Interline Resources executed a Management Services Agreement. Interline Resources will act as manager of the Plant for a term of fifty years. Under the agreement, Interline Resources will provide management, supervisory, and other general services to NorthCut and the plant, and supervise and direct all aspects of the day-to-day operation of the plant. During the construction phase of the plant, Interline Resources receives a management fee of US$87,000 per month for six months. Once in operation, Interline Resources receives a monthly operating fee of US$40,000. Until the construction loan is repaid, all profits and losses are allocated 100% to Interline Resources. Well Draw Gas plant The natural gas gathering system was built and connected to the Well Draw Gas plant in 1973 and consists of nearly 60 miles high pressure discharge line, 120 miles of low pressure gathering lines and 90 miles of low pressure fuel return lines and associated valves, tanks, fittings and other appurtenant equipment. When Interline Resources purchased the Well Draw Gas plant in 1990, the sale included the gathering system. The system covers an area of around 70 by 40 miles. In 2006, the company sold around 19 miles of high-pressure discharge line for US$175,000. The company currently owns 41 miles high-pressure discharge line; 120 miles of low pressure gathering lines; and 90 miles of low-pressure fuel return lines and associated valves, tanks, fittings and other appurtenant equipment. There is currently no gas being transported in the system. Because the system is in an area where the original wells connected to the system are depleted, or have been connected to other pipelines, the system has only a limited present value. Unless additional wells are drilled in the company's gathering area, the company has no prospects of operating its gas system and receiving revenues from the gas system. About Interline Resources Interline Resources Corporation (Other OTC: IRCE.PK) -- http://www.interlineresources.com/-- along with its subsidiaries Interline Energy Services, Inc., and Interline Hydrocarbons, Inc., operates in two segments: Oil and Gas and Used Oil Technology. The O&G segment engages in natural gas gathering and processing, crude oil gathering, fractionation, marketing of natural gas liquids, and oil and gas production. The gas is processed and fractionated into its constituent natural gas liquid products and remaining residue gas. Residue gas is sold into a major interstate pipeline and the natural gas liquid products are sold to both end users and other major refineries for further refinement. The UOT segment refines various types of used oils. The company's marketing efforts extend to a worldwide market. In 1996, the company's unit, Interline Hydrocarbon, signed construction and licensing contracts for used oil plants in Seoul, Korea. The plant was put on line in 1997. ==================== N E W Z E A L A N D ==================== AIR NEW ZEALAND: Resumes Non-Stop Service to Beijing ---------------------------------------------------- Air New Zealand Ltd's first non-stop service between Auckland and Beijing departed on July 18, 2008. The direct services will also help to promote New Zealand as a single holiday destination, rather than being an add-on to Australia. Last year 64% of Chinese arrivals came to New Zealand via Australia. Air New Zealand said China is already a rich source of visitors to New Zealand. It is New Zealand's fourth largest market and one of the fastest-growing. In the year to May 2008, 125,424 Chinese visited New Zealand, up 10,000 visitors on the previous year. With a population of 1.32 billion people whose personal incomes are rising between 10-15% each year, close to 40 million Chinese travelled overseas last year. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand Ltd is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. Air New Zealand flies to the United States, United Kingdom, Canada, Europe and other Asian cities. * * * As reported in the Troubled Company Reporter-Asia Pacific on June 20, 2008, Standard & Poor's Ratings Services removed its unsolicited 'BB/Stable' credit rating and outlook on Air New Zealand Ltd. According to S&P, the airline's strategic and commercial response to the very high fuel prices is an important credit consideration in the current volatile environment. Without the full interaction of the company in the rating process, S&P said it feels it is no longer able to provide a credit opinion. On April 24, 2008, Moody's Investors Service affirmed Air New Zealand Limited's Ba1 senior unsecured issuer rating. The outlook on the rating is positive. AIR NEW ZEALAND: Increases Airfares Amid Rising Fuel Prices ----------------------------------------------------------- Air New Zealand Ltd said it increased airfares across many routes from July 17, 2008, in response to continued high jet fuel prices. Airfares sold in New Zealand for Tasman and domestic flights increased by an average 3% while fares to North America, Asia and United Kingdom increased by an average 5%. June Market Conditions Air New Zealand said that the passengers it carried across the Group were 4.3% higher than in the month of June 2007. For the 2008 financial year, Short Haul passenger numbers increased by 4.5% and Long Haul by 12.3% on the 2007 financial year. The Group load factor dropped in June by 0.7 percentage points compared with the comparable period last year. This was primarily driven by a drop in passenger load factors across the Short Haul network. Passenger numbers increased by 4.5% for the month but this growth was unable to keep up with the 7.7% increased capacity on June last year. Long Haul passenger load factors for the month increased slightly driven by a 10.5% reduction in capacity on Japanese routes on June 2007. Although passenger load factors on North American/UK routes were down on last June they remained the highest across the business at 82.6% on a 7.1% increase in capacity. - Short Haul passenger load factors decreased 2.7 percentage points to 72.7% - Domestic passenger load factor was down 3.1 percentage points to 72.4% - Tasman / PI passenger load factor decreased by 2.4 percentage points to 72.9% - Long Haul passenger load factors increased 0.8 percentage points to 80.8% - Asia / Japan / UK passenger load factor was up 3.9 of a percentage point to 78.3% - North America / UK passenger load factor decreased 1.8 percentage points to 82.6% Group-wide yields for the year were up 0.2% on the 2007 financial year. Short haul and long haul yields were up on last year by 1.0% and 3.0% respectively. Removing the impact of foreign exchange, group-wide yields were up 3.2%. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand Ltd is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. Air New Zealand flies to the United States, United Kingdom, Canada, Europe and other Asian cities. * * * As reported in the Troubled Company Reporter-Asia Pacific on June 20, 2008, Standard & Poor's Ratings Services removed its unsolicited 'BB/Stable' credit rating and outlook on Air New Zealand Ltd. According to S&P, the airline's strategic and commercial response to the very high fuel prices is an important credit consideration in the current volatile environment. Without the full interaction of the company in the rating process, S&P said it feels it is no longer able to provide a credit opinion. On April 24, 2008, Moody's Investors Service affirmed Air New Zealand Limited's Ba1 senior unsecured issuer rating. The outlook on the rating is positive. CASA MIA: Commences Liquidation Proceedings ------------------------------------------- The High Court at Wellington held a hearing on June 30, 2008, to consider an application putting Casa Mia Ristorante Italian Limited into liquidation. The application was filed on April 10, 2008, by Christos Tamvakis. The plaintiff's address for service is at: The Law Store Level 7 14 Hartham Place South Guardian Healthcare Building Porirua City Adam Vincent Caccioppoli is the plaintiff's solicitor. CRAZY TOWN: Commences Liquidation Proceedings --------------------------------------------- The High Court at Wellington convened a hearing on June 30, 2008, to consider an application putting Crazy Town Limited into liquidation. The application was filed on May 14, 2008, by the Commissioner of Inland Revenue. The plaintiff's address for service is at: Inland Revenue Department Legal and Technical Services 7-27 Waterloo Quay (PO Box 1462) Wellington Telephone: (04) 890 1107 Facsimile: (04) 890 0009 Deepika Belinda Padmanabhan is the plaintiff's solicitor. DIVCO STEEL: Commences Liquidation Proceedings ---------------------------------------------- The High Court at Auckland held a hearing on July 2, 2008, to consider an application putting Divco Steel Limited into liquidation. The application was filed on May 16, 2008, by Maruonz D & C Limited. The plaintiff's address for service is at: Brookfields, Lawyers 11th Floor 19 Victoria Street West Auckland D. J. Neutze is the plaintiff's solicitor. EASI LAWN: Commences Liquidation Proceedings -------------------------------------------- The High Court at Hamilton held a hearing on June 30, 2008, to consider an application putting Easi Lawn Limited into liquidation. The application was filed on April 7, 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. HANOVER FINANCE: Commerce Commission Opens Investigation -------------------------------------------------------- The Commerce Commission has opened an investigation into Hanover Finance Ltd. The commission said its investigation is into whether Hanover Finance has breached the Fair Trading Act by making misleading representations to prospective investors and/or the public generally. As reported in the Troubled Company Reporter – Asia Pacific on July 24, 2008, Hanover Finance Limited said it would suspend acceptance of new investments and repayment of existing deposits as it worked with trustees on a plan to restructure the business going forward. Hanover Finance, which continues to meet its Trust Deed obligations and has ongoing financial capacity to trade, says it is acting early to preserve value in the business as market conditions continue to deteriorate and uncertainty mounts over borrowers abilities to repay as forecast. Hanover said Mark Hotchin and fellow shareholder Eric Watson have pledged continued support for the business and will also work closely with the trustees to deliver the restructure arrangement. Mr. Hotchin said the suspension of capital and interest repayments, effective yesterday, will enable the business to be managed in a measured way as it works through a restructure plan to allow investors to be repaid over an agreed time period. The action also applies to investments with Hanover Finance subsidiary United Finance Limited, and sister company Hanover Capital Limited. According to Hanover, a detailed proposal will be presented to investors, targeted for late August but with the exact timing to be determined in consultation with the trustees - New Zealand Guardian Trust for Hanover Finance, and Perpetual Trust for United Finance and Hanover Capital. The Hanover Finance book comprises approximately 13,000 investors with NZ$465 million in debentures. United Finance has around 2,400 investors with NZ$65 million in debentures. And Hanover Capital, offering secured preferential bonds, has around 1,100 investors with NZ$24 million worth of bonds. About HFL HFL is NZ's third-largest privately-owned finance company with total assets of NZD796 million at 31 December 2007. The company was established in 1984 to provide finance to the rural sector and began lending to property developers and investors in 1995. The loan portfolio has been gradually downsized since 2006 as a result of a more cautious approach to lending in the face of retail funding constraints. * * * As reported in the Troubled Company Reporter – Asia Pacific on April 21, 2008, Fitch Ratings affirmed the ratings of Hanover Finance Limited (HFL) at Long-term foreign currency Issuer Default Rating (IDR) 'BB+', Short-term IDR 'B', Individual rating 'C/D' and Support rating '5'. It has also assigned a Support Rating Floor of 'NF' to HFL. The Outlook is Stable. At the same time, Fitch has affirmed and simultaneously withdrawn Hanover Financial Services Limited's (HFSL) ratings of 'BB+' Long-term foreign currency IDR with Stable Outlook, 'B' Short- term IDR, 'C/D' Individual and '5' Support rating. HFSL is effectively a holding company with no rating requirements. LITTLE SCAFFOLDING: Commences Liquidation Proceedings ------------------------------------------------------ The High Court at Auckland held a hearing on July 11, 2008, to consider an application putting Little Scaffolding Limited into liquidation. The application was filed on March 10, 2008, by the Commissioner of Inland Revenue. The plaintiff's address for service is at: Inland Revenue Department Legal and Technical Services 5-7 Byron Avenue (PO Box 33150) Takapuna, Auckland Telephone: (09) 984 1514 Facsimile: (09) 984 3116 Michael Kinlim Yan is the plaintiff's solicitor. METER HOLDINGS: Shareholders Appointed Liquidators -------------------------------------------------- Pursuant to Section 243(8) of the Companies Act 1993, the shareholders of Meter Holdings Limited has appointed Richard Dale Agnew and John Anthony Waller, chartered accountants of Auckland, as liquidators of the company. Only creditors who were able to file their proofs of debt on July 4, 2008, were included in the company's dividend distribution. Creditors and shareholders may direct their inquiries to: Simone Fernandes PricewaterhouseCoopers Private Bag 92162 Auckland Telephone: (09) 355 8000 Facsimile: (09) 355 8013 ROOF COATING: Commences Liquidation Proceedings ----------------------------------------------- The High Court at Hamilton held a hearing on June 30, 2008, to consider an application putting Roof Coating Specialists Limited into liquidation. The application was filed on May 15, 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. SUCCESS PERSONNEL: Commences Liquidation Proceedings ---------------------------------------------------- The High Court at Hamilton held a hearing on June 30, 2008, to consider an application putting Success Personnel Limited into liquidation. The application was filed on March 31, 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. TAUEKI TRANSPORT: Commences Liquidation Proceedings --------------------------------------------------- The High Court at Auckland convened a hearing on July 11, 2008, to consider an application putting Taueki Transport Limited into liquidation. The application was filed on March 17, 2008, by the Commissioner of Inland Revenue. The plaintiff's address for service is at: Inland Revenue Department Legal and Technical Services 5-7 Byron Avenue PO Box 33150 Takapuna, Auckland Telephone: (09) 984 1514 Facsimile: (09) 984 3116 Michael Kinlim Yan is the plaintiff's solicitor. TRIPLE ACT: Shareholders Taps Toon and Finnigan as Liquidators -------------------------------------------------------------- In accordance with Section 241 of the Companies Act 1993, the shareholders of Triple Act Limited has appointed Victoria Toon and Peri Micaela Finnigan, chartered accountants of Auckland, as liquidators of the company. Only creditors who were able to file their proofs of debt on July 18, 2008, were included in the company's dividend distribution. The liquidators can be reached at: McDonald Vague PO Box 6092 Wellesley Street Post Office Auckland Telephone: (09) 303 0506 Facsimile: (09) 303 0508 Website: www.mvp.co.nz =============== P A K I S T A N =============== AZGARD NINE: Moody's Withdraws B2 Corporate Family Rating --------------------------------------------------------- Moody's Investors Service has withdrawn Azgard Nine Limited's ("Azgard") B2 Corporate Family rating. Moody's has withdrawn this rating for business reasons. Headquartered in Lahore, Pakistan, Azgard is an established denim textile manufacturer with fully integrated spinning, weaving and processing operations. In July 2006, Azgard acquired 100% of Pak American Fertilizer Limited ("PAFL"), one of 5 urea plants in Pakistan with a 7% market share of the domestic fertilizer business. The company recorded sales of PKR 12,309 million (US$176 million) for the fiscal year ended December 31, 2007 ===================== P H I L I P P I N E S ===================== * PHILIPPINES: Raises PHP70 Bil. From Retail Treasury Bond Offer ---------------------------------------------------------------- The government has raised Php70 billion in three days from an offering of retail Treasury bonds that attracted plenty of interest from small investors looking for steady returns, The Philippine Daily Inquirer reports. According to the report, the government closed the offer for three-year and five-year fixed-rate retail bonds on Wednesday, six days ahead of schedule. The offer, which opened to banks on July 18, was meant to close on July 29. The PDI cited National Treasurer Roberto Tan as saying that some of the buyers held some of the Php33-billion worth of retail Treasury bonds that had matured on July 1. Many buyers switched from stocks and other corporate securities because of volatility. The report noted that the government allotted Php9.124 billion of the retail bonds to banks and Php10 billion to state-run corporations. The three-year bond carries a coupon of 8.5 percent and the five-year bond has a coupon of 9.0 percent, with quarterly interest payments for both, the report added. * PHILIPPINES: Prepays US$498 Mil. in Foreign Loans --------------------------------------------------- The Philippine government prepayment of foreign loans reached US$498 million in the first five months of the year, less than one-third the amount of prepayments made last year which was recorded at US$1.611 billion, the Philippine Star reports citing a report by the Bangko Sentral ng Pilipinas (BSP). BSP Governor Amando M. Tetangco Jr. was cited by the Philippine Star as saying that the private sector continued to clean up their loan portfolios by prepaying US$328.9 million, whereas the public sector -- mainly the National Government and government corporations -- prepaying US$169.3 million worth of foreign obligations in the first five months of the year . Mr. Tetangco also told the news agency that the BSP did not expect prepayments to be as large as last year, however, saying that aside from the change in the position of the peso against the dollar and other currencies, public and private loan portfolios have begun to shift. ================= S I N G A P O R E ================= SCOTTISH RE: Ernst & Young Expresses Going Concern Doubt -------------------------------------------------------- Ernst & Young LLP raised substantial doubt about the ability of Scottish Re Group Limited to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's net loss for the year ended Dec. 31, 2007, accumulated deficit of US$1,042,400,000 as of Dec. 31, 2007, and the company's deteriorating financial performance and worsening liquidity and collateral position. The company posted a net loss of US$895,742,000 on total revenues of US$1,505,373,000 for the year ended Dec. 31, 2007, as compared with a net loss of US$366,714,000 on total revenues of US$2,429,500,000 in the prior year. Management's Statement As a result of declines in the fair value of its invested assets, which contain a significant concentration of sub-prime and Alt-A residential mortgage-backed securities, the company has experienced deteriorating financial performance and a worsening liquidity and collateral position. The continuing deterioration in the market for sub-prime and Alt-A securities through the first half of 2008 has compounded the considerable financial challenges and uncertainties faced by the company. In addition to causing significant impairment charges and reported losses, these adverse market conditions have impacted the value of underlying collateral used to secure the company's life reinsurance obligations and statutory reserves for its operating units. Any reserve credit shortfalls arising from a decline in the value of collateral places increased demand on the company's available capital and liquidity. The impairment charges and associated decline in the company's consolidated shareholders equity will also result in the failure to meet minimum net worth covenants for the HSBC II and Clearwater Re collateral finance facilities. The company had recently executed forbearance agreements with the counter parties under these facilities who have agreed to forbear taking action until Dec. 15, 2008, in return for certain economic and non-economic terms. Such terms have placed additional constraints on the company's available capital and liquidity. The company's liquidity is insufficient to fund its needs beyond the short term and, without additional sources of capital or the successful completion of strategic actions, is currently projected to be exhausted by the first quarter of 2009. Recent Events The company has faced a number of significant challenges during the latter part of 2007 and continuing into 2008, which have required the company to change its strategic focus. These challenges have included: -- The continuing deterioration in the U.S. residential housing market in general and the market for sub-prime and Alt-A residential mortgage-backed securities specifically. These conditions have had, and will likely continue to have, a material adverse effect on the value of the company's consolidated investment portfolio and capital and liquidity position; -- The negative outlooks placed on its financial strength ratings by each of the rating agencies in November 2007, followed by the ratings action taken by Standard & Poors in early 2008 lowering the financial strength ratings of the company's operating subsidiaries from "BB+" to "BB" and placing the ratings on CreditWatch with negative implications, as well as the subsequent ratings downgrades and negative outlooks placed on its financial strength ratings by other rating agencies, with the resulting material negative impact on its ability to achieve its previous goal of attaining an "A-" or better rating by the middle of 2009; and -- The material negative impact of ratings declines and negative outlooks by rating agencies on the company's ability to grow its life reinsurance businesses and maintain its core competitive capabilities. Company's Strategy On January 21, 2008, the company's board of directors established a special committee to evaluate the alternatives developed by management. On Feb. 22, 2008, management announced the unanimously adopted business strategy recommended by the special committee. The strategy consists of: -- the disposal of its non-core assets or lines of business, including the Life Reinsurance International Segment and the Wealth Management business; -- the development, through strategic alliances or other means, of opportunities to maximize the value of its core competitive capabilities within the Life Reinsurance North America Segment, including mortality assessment and treaty administration; and -- rationalization of the company's cost structure to preserve capital and liquidity. The company has changed its strategic focus and initiated a number of actions to preserve capital and mitigate growing liquidity demands. The company had ceased writing new reinsurance treaties and notified existing clients that it will not be accepting new risks on existing treaties. The company have also taken steps to reduce its operating expenses including reducing staffing levels. The company is also actively pursuing the sale of its Life Reinsurance North America Segment and recently entered into definitive agreements for the sale of its Life Reinsurance International Segment and Wealth Management business. The company also continues to pursue the restructuring of certain of its collateral financing facilities and potential alternatives to these facilities to alleviate the collateral requirements of its reinsurance operating subsidiaries. If the company fails in reaching a definitive agreement for the sale of its Life Insurance North America Segment by Dec. 15, 2008, the company will continue to follow a run-off strategy and will need to obtain additional forbearance from the relevant counterparties to Clearwater Re and HSBC II; find alternative collateral support for Clearwater Re and HSBC II or raise additional capital. If the company fails to successfully execute on these actions, its insurance operating subsidiaries may become insolvent and the company may need to seek bankruptcy protection. Balance Sheet At Dec. 31, 2007, the company's balance sheet showed US$12,821,063,000 in total assets,US$11,909,454,000 in total liabilities,US$9,025,000 in minority interest,US$555,857,000 in convertible cumulative preferred shares, and US$346,727,000 in total stockholders' equity. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?2fc3 About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. As reported in the Troubled Company Reporter-Latin America on June 17, 2008, Moody's Investors Service placed on review with direction uncertain Scottish Re Group Ltd.'s senior unsecured shelf of (P)Caa1, subordinate shelf of (P)Caa2, junior subordinate shelf of (P)Caa2, preferred stock of Caa3, and preferred stock shelf of (P)Caa3. Moody's had previously placed the ratings on review for possible downgrade. =============== T H A I L A N D =============== * FITCH: Major Thai Banks' H1 Results Strong Amidst Econ. Shocks ---------------------------------------------------------------- Fitch Ratings has said that the major Thai banks' H1 results show resilience amidst global economic shocks and local political uncertainty as some banks reported stronger results compared to 2007. Nonetheless, the weakening economic outlook and falling consumer and business confidence will likely impact growth and asset quality in the second half. As projected by the agency, TMB Bank Public Company Limited reported a marked turnaround, while Bank of Ayudhya Public Company Limited and Krung Thai Bank Public Company Limited also reported stronger results. The leading banks, Bangkok Bank Public Company Limited, Siam Commercial Bank Public Company Limited and Kasikornbank Public Company Limited generally maintained strong results. Barring further economic or political shocks, lower provisioning and higher loan growth should see overall stronger results in 2008 for the Thai bank sector. "Despite the turmoil in credit and equity markets globally, the stronger Thai banks so far continue to perform well, namely SCB, KBANK and BBL - each rated 'BBB+'. As reflected in Fitch's earlier upgrade in January (to 'BBB-'), TMB reported a marked turnaround from losses in previous years, although integration with ING Bank could see results constrained this year. The ongoing transformation at BAY following its tie-up with GE Capital in January 2007, should see a further strengthening in its credit profile and performance in the next year, reflected in Fitch's Positive Outlook on the bank," comments Vincent Milton, Managing Director of Fitch Ratings Thailand and Senior Director, Financial Institutions. "A pick-up in corporate loan growth is offsetting some moderation in growth to SMEs and consumers. Nonetheless, given the prolonged period of high oil prices and renewed domestic political uncertainty which is impacting consumption and investment, performance for the sector in the second half of the year will likely weaken. The operating environment remains challenging and heightened credit and market risks could impact results over the next year, although the major banks should be more resilient," adds Mr. Milton. TMB reported a net profit of THB2.8 billion for the first half (following a THB43.5 billion loss in 2007), permitting the bank at end-June 2008 to renew interest coupons on its hybrid Tier 1 instrument (rated 'BB-') as Fitch had earlier projected. BAY reported a net profit of THB3 billion for the first half (after a THB4 billion loss for 2007) and KTB reported higher net profit of THB6.2 billion for H1 (compared to THB6.4 billion for full year 2007). Provisioning risks still remain for BAY and KTB given their lower loan loss reserve coverage ratio, although BAY should have greater clarity on its reserve position by year-end as it disposes of further bad loans; provisioning rose significantly at KTB and SCB in Q2, the latter due to credit deterioration at its auto finance unit. The bellwether banks all reported solid net profit for H1 as - BBL: THB10.7 billion; SCB: THB12.7 billion; and KBANK: THB8.7 billion. BBL reported the highest underlying loan growth of over 12% in the first half helped by a jump in working capital requirements for larger corporates and SMEs as well as growth from its offshore branches, while TMB's loan book continued to shrink by a further 6%. BAY's loans increased by 20% mainly due to the acquisition of GE's used car finance portfolio. The major banks still appear to be on track to report impaired loans of less than 5% by year-end, helped by an acceleration of asset sales to clean-up their remaining legacy bad loans from the 1997 crisis. NPLs rose slightly in H1, although ratios declined as loan books expanded. The weakening credit environment and asset disposals could see higher provisioning for some of the banks and further losses on asset disposals, although capital ratios should remain strong. Funding costs are also expected to rise as liquidity tightens and smaller banks may be subject to rising funding pressures. While results could weaken in the second half, Fitch expects SCB, KBANK and BBL to continue to report solid financial results. BAY, TMB and KTB should report an overall improvement in performance in 2008 due to lower provisioning and a pick-up in loan growth. The rating outlook on Thai banks is generally stable. =============== X X X X X X X X =============== * Fitch Says Negative Rating Trend in Global Banks Persists ----------------------------------------------------------- Fitch Ratings expects further negative rating actions on banks in the coming months, as the operating environment remains tough and the global economy continues to slow. There were more than twice as many negative rating actions taken during Q208 than positive actions, intensifying the negative trend already experienced in the previous two quarters. In its latest quarterly report on "Global Bank Rating Trends", Fitch says the number of Positive Outlooks compared to Negative Outlooks assigned to bank ratings has steadily fallen over the past 15 months, with the number of Negative Outlooks surpassing that of Positive Outlooks at end-June 2008. Although the immediate liquidity risks in the global banking system have been partly alleviated by measures taken by central banks, wider concerns about the extent to which global credit market conditions are likely to feed through to the real economies of developed countries intensified in Q208. "Banks in developed markets now face the prospect of increased credit costs on top of higher funding costs," says Gerry Rawcliffe, Managing Director and Group Credit Officer in Fitch's Financial Institutions Group. "Furthermore, Fitch does not rule out further write-downs of structured products, including write- downs related to financial guarantors." During Q208 there were 69 negative rating actions on banks as opposed to 31 positive actions. Although there were still more positive actions in emerging markets than negative, there were significantly more negative actions than positive actions in developed markets. Rating downgrades during the quarter were predominantly in Europe, although there were some further downgrades in the developed Americas as well. Having peaked in Q107 at five to one, at end-Q208 the number of Positive Outlooks was surpassed by the number of Negative Outlooks for the first time since the Global Bank Rating Trends report series began in 2006. The increase in Negative Outlooks largely related to banks in developed Europe and developed Americas. Despite this negative shift in Outlooks, around 80% of Fitch's bank ratings still have Stable Outlooks. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker (US$MM) (US$MM) ------- ------ ------ ------------ AUSTRALIA ADVANCE HEALTHCA AHG 15.65 -6.78 ALLSTATE EXPLORA ALX 18.20 -42.78 AUSTINDO RES ARX 62.77 -15.88 AUSTAR UNITED AUN 525.67 -234.87 ANTARES ENERGY L AZZ 16.20 -4.36 BIRON APPAREL LT BIC 19.71 -2.22 CROESUS MINING CRS 16.00 -13.81 ETW CORP LTD ETW 103.76 -50.22 INTELLECT HLDGS IHG 15.25 -10.88 KH FOODS LTD KHF 38.40 -6.79 LAFAYETTE MIN LAF 105.24 -190.86 METAL STORM LTD MST 16.47 -2.9 RENISON CONSOLID RSN 38.83 -3.94 TOOTH & CO LTD TTH 120.47 -87.64 CHINA HISENSE ELEC-H 921 604.98 -86.30 NINGBO YIDONG-H 8249 86.83 -0.19 SHENZ SEG DASH-A 000007 101.02 -1.14 SHENZ CHINA BI-A 000017 29.38 -244.53 SHENZHEN SHENXIN 000034 44.99 -113.37 CHINA KEJIAN-A 000035 65.12 -167.31 SHENZHEN KONDA-A 000048 155.01 -24.45 HUNAN ANPLAS CO 000156 84.00 -81.35 ZHANGJIAJIE TO-A 000430 51.01 -8.25 DANDONG CHEM F-A 000498 115.94 -91.60 SUCCESS INFORMAT 000517 30.12 -14.83 GUANGDONG MEIYA 000529 66.44 -62.41 GUANGXIA YINCH-A 000557 53.46 -61.33 CHANG LING GROUP 000561 49.68 -115.81 QINGHAI SALT L-A 000578 105.64 -4.91 GUANGMING GRP FU 000587 62.37 -12.08 FUJIAN CFC IND-A 000592 24.20 -19.62 YUEYANG HENGLI-A 000622 40.27 -14.34 LAN BAO TECH INF 000631 29.44 -22.70 CHINA LIAONING-A 000638 15.43 -5.70 CHENGDU UNION-A 000693 59.53 -0.19 JIAOZUO XIN'AN-A 000719 50.82 -25.45 FUJIAN SANNONG-A 000732 64.42 -90.24 CHONGWING INTL-A 000736 24.75 -13.38 SICHUAN DIRECT-A 000757 128.55 -102.62 CHINESE.COM LOGI 000805 12.72 -20.57 SHENZHEN DAWNC-A 000863 36.85 -142.58 STELLAR MEGAUNIO 000892 64.93 -162.46 HUNAN AVA HOLDIN 000918 176.94 -11.26 GUANGDONG KEL-A 000921 604.98 -86.30 ANHUI KOYO GROUP 000979 64.28 -30.78 SHENZ CHINA BI-B 200017 29.38 -244.53 AMOI ELECTRONICS 600057 414.93 -30.40 SUNTIME INTERN-A 600084 372.80 -50.59 SHANG WORLDBES-A 600094 327.98 -175.17 MIANYANG GAO-A 600139 30.66 -12.44 HEBEI BAOSHUO CO 600155 313.38 -212.29 HUATONG TIANXI-A 600225 73.84 -41.14 TAIYUAN TIANLON 600234 12.69 -51.58 TIBET SUMMIT IND 600338 73.50 -16.42 CHONGQING CHANG 600369 98.87 -0.06 QINGHAI SUNSHI-A 600381 47.31 -49.66 WINOWNER GROUP C 600681 21.50 -81.28 HEBEI JINNIU C-A 600722 379.30 -2.89 SUNTEK TECHNOLOG 600728 44.69 -22.95 FUJIAN START-A 600734 105.66 -14.34 TIANJIN MARINE 600751 75.44 -26.60 TOPSUN SCIENCE-A 600771 232.68 -131.98 XIAMEN OVERSEAS 600870 433.19 -13.78 HUDA TECHNOLOG-A 600892 18.46 -1.90 TIANJIN MARINE-B 900938 75.44 -26.60 SHANG WORLDBES-B 900940 327.98 -175.17 HONG KONG CHIA TAI ENTERPR 121 316.11 -40.95 CHINA BEST GROUP 370 55.54 -1.84 ASIA TELEMEDIA L 376 16.97 -7.53 WELLING HOLDING 382 303.95 -44.65 NEW CITY CHINA 456 110.83 -6.78 PALADIN LTD 495 167.43 -6.23 MAXX BIOSCIENCE 512 25.48 -5.36 CHINA HEALTHCARE 673 25.44 -3.37 PLUS HOLDINGS LT 1013 10.40 -10.21 SUNCORP TECH LTD 1063 31.94 -35.07 FE GOLDEN RES 1188 52.49 -9.92 WAH SANG GAS 8035 61.51 -106.48 INDIA ANDREW YULE & CO ANY 81.41 -30.90 ARTSON ENGR ART 10.31 -0.71 ASHIMA LTD ASHM 96.57 -42.59 BHAGHEERATHA ENG BGEL 22.65 -28.20 BALAJI DISTILLER BLD 45.66 -74.20 BELLARY STEELS BSAL 395.36 -41.25 CFL CAPITAL FIN CEATF 24.03 -43.80 CORE HEALTHCARE CPAR 185.37 -241.91 DIGJAM LTD DGJM 98.77 -14.62 DISH TV INDIA DITV 239.48 -12.62 ELQUE POLYESTERS ELQP 13.80 -25.63 GANESH BENZOPLST GBP 82.16 -38.25 SURAT TEXTILE MI GCTY 15.97 -8.85 GUJARAT SIDHEE GSCL 59.44 -0.66 GUJARAT STATE FI GSF 43.60 -195.24 HIMACHAL FUTURIS HMFC 603.36 -13.34 HMT LTD HMT 316.41 -175.33 HINDUSTAN PHOTO HPHT 95.12 -953.35 IFB INDS LTD IFBI 40.50 -70.82 INDIA STEEL WORK ISI 56.76 -1.47 JCT ELECTRONICS JCTE 117.60 -50.17 JK SYNTHETICS JKS 20.21 -2.17 JENSON & NIC LTD JN 14.81 -81.79 KALYANPUR CEMENT KCEM 38.11 -48.48 LKP MERCHANT FIN LKP 29.99 -0.47 LML LTD LML 86.80 -27.97 LLOYDS METALS LYDM 76.63 -0.41 LLOYDS STEEL IND LYDS 392.56 -102.16 MODI RUBBER LTD MDR 39.76 -24.30 MAFATLAL INDS MFI 95.67 -85.81 MILLENNIUM BEER MLB 38.26 -3.52 PAREKH PLATINUM PKPL 59.66 -75.55 PANCHMAHAL STEEL PMS 51.02 -0.33 PSI DATA SYSTEMS PSI 11.68 -2.48 PTL ENTERPRIESES PTLE 54.29 -0.40 PANYAM CEMENTS PYC 30.24 -9.40 ROLLATAINERS LTD RLT 22.97 -22.24 REMI METALS GUJA RMM 45.06 -51.10 RPG CABLES LTD RPG 51.43 -20.19 SIL BUSINESS ENT SILB 12.46 -19.96 SANDUR MANGANESE SMIO 32.57 -2.61 SIMPLEX REALTY SPLX 16.49 -0.44 SHREE RAMA MULTI SRMT 71.22 -29.91 TATA TELESERVICE TTLS 657.28 -73.89 TVS ELECTRONICS TVSEL 30.73 -1.57 UB ENGINEERING UBE 31.43 -2.86 USHA INDIA LTD USHA 12.06 -54.51 JOG ENGINEERING VMJ 50.08 -10.08 VXL INSTRUMENT VXLI 12.20 -0.62 YASHRAJ CONTAINE YRCT 17.49 -2.09 INDONESIA PRIMARINDO ASIA BIMA 10.35 -20.51 BUKAKA TEKNIK UT BUKK 64.09 -99.37 DAYA SAKTI UNGGU DSUC 30.76 -6.51 ERATEX DJAJA ERTX 31.06 -2.42 TITAN KIMIA NUST FPNI 25.81 -0.72 JAKARTA KYOEI ST JKSW 30.89 -41.37 KARWELL INDONESI KARW 32.21 -2.26 PANCA WIRATAMA PWSI 31.46 -31.94 STEADY SAFE TBK SAFE 22.30 -8.31 SURABAYA AGUNG SAIP 283.40 -75.78 SEKAR BUMI TBK SKBM 19.7 0 0 TEIJIN INDONESIA TFCO 266.23 -27.64 UNITEX TBK UNTX 16.04 -10.83 JAPAN HEIWA OKUDA CO L 1790 82.68 -6.66 LINK ONE 2403 16.60 -3.12 LINK CONSULTING 4798 50.71 -10.14 CASIO MICRONICS 6760 184.29 -31.13 AIREX INC 6944 44.25 -7.05 SUMIYA CO 9939 70.82 -10.21 MALAYSIA CNLT FAR EAST CNLT 42.36 -6.34 FOREMOST HLDGS FMST 11.04 -0.11 HARVEST COURT HAR 10.68 -5.71 LITYAN HLDGS BHD LIT 23.33 -26.71 MANGIUM INDUSTRI MANG 14.36 -18.65 PUTERA CAP BHD PCAP 10.56 -4.70 PANGLOBAL BHD PGL 179.11 -170.79 SUNWAY INFRASTRU SIB 399.84 -10.80 TECHVENTURE BHD TECH 37.23 -11.29 WEMBLEY INDS WMY 125.94 -283.62 WONDERFUL WIRE WW 22.80 -2.47 PHILIPPINES APEX MINING-A APX 55.27 -1.97 APEX MINING 'B' APXB 55.27 -1.97 BENGUET CORP-A BC 83.36 -30.59 BENGUET CORP 'B' BCB 83.36 -30.59 CENTRAL AZUC TAR CAT 35.74 -1.80 CYBER BAY CORP CYBR 14.85 -74.30 FIL ESTATE CORP FC 43.03 -10.93 "FILSYN CORP ""A""" FYN 24.84 -11.37 "FILSYN CORP. ""B""" FYNB 24.84 -11.37 GOTESCO LAND-A GO 18.68 -10.86 GOTESCO LAND-B GOB 18.68 -10.86 MRC ALLIED MRC 14.95 -0.75 PICOP RESOURCES PCP 105.66 -23.33 PRIME ORION PHIL POPI 99.69 -82.12 EAST ASIA POWER PWR 72.74 -136.68 UNIVERSAL RIGHTF UP 45.12 -13.48 UNITED PARAGON UPM 27.11 -36.05 UNIWIDE HOLDINGS UW 65.66 -57.31 VICTORIAS MILL VMC 175.01 -38.64 SINGAPORE ADV SYSTEMS AUTO ASA 21.96 -7.54 CHUAN SOON HUAT CSH 42.09 -3.64 FALMAC LTD FAL 10.57 -4.70 GUL TECHNOLOGIES GUL 172.80 -3.04 HL GLOBAL ENTERP HLGE 123.41 -7.36 INFORMATICS EDU INFO 29.09 -3.48 LINDETEVES-JACOB LJ 198.91 -66.97 L&M GROUP INV LNM 56.91 -10.59 PACIFIC CENTURY PAC 80.01 -10.54 SOUTH KOREA ORICOM INC 010470 82.65 -40.04 UNICK CORP 011320 36.54 -4.45 STARMAX CO LTD 017050 73.13 -5.54 DAISHIN INFO 020180 740.5 -158.45 TONG YANG MAGIC 023020 355.15 -25.77 NANO MINING CO L 036270 26.64 -29.46 COSMOS PLC 053170 19.31 -4.95 SEJI CO LTD 053330 37.25 -0.31 MEDIACORP INC 053890 53.31 -32.22 DAHUI CO LTD 055250 186.00 -1.50 TAIWAN CHIEN TAI CEMENT 1107 213.25 -8.62 PROTOP TECHNOLOG 2410 55.69 -13.46 YEU TYAN MACHINE 8702 39.57 -271.07 THAILAND BANGKOK RUBBER BRC 89.62 -81.26 BANGKOK RUBBER-F BRC/F 89.62 -81.26 BANGKOK STEEL IN BSI 458.73 -136.44 BANGKOK STEEL-F BSI/F 458.73 -136.44 CIRCUIT ELEC PCL CIRKIT 24.60 -94.26 CIRCUIT ELEC-FRN CIRKIT/F 24.60 -94.26 CENTRAL PAPER IN CPICO 13.25 -241.78 CENTRAL PAPER-F CPICO/F 13.25 -241.78 THAI-DENMARK PCL DMARK 19.57 -3.20 THAI-DENMARK-F DMARK/F 19.57 -3.20 DATAMAT PCL DTM 17.55 -1.72 DATAMAT PLC-F DTM/F 17.55 -1.72 ITV PCL ITV 44.70 -73.07 ITV PCL-FOREIGN ITV/F 44.70 -73.07 K-TECH CONSTRUCT KTECH/F 83.20 -5.69 NEW PLUS KNITT NPK 10.08 -2.03 NEW PLUS KNITT-F NPK/F 10.08 -2.03 KUANG PEI SAN POMPUI 18.78 -14.07 KUANG PEI SAN-F POMPUI/F 18.78 -14.07 QUALITY CONSTRUC QCON 76.13 -293.83 QUALITY CONSTR-F QCON/F 76.13 -293.83 SAFARI WORLD PUB SAFARI 128.58 -13.64 SAFARI WORLD-FOR SAFARI/F128.58 -13.64 SIAM GEN FACTOR SGF 30.18 -6.79 SIAM GEN FACT-F SGF/F 30.18 -6.79 SAHAMITR PRESSUR SMPC 27.26 -34.59 SAHAMITR PRESS-F SMPC/F 27.26 -34.59 SRI THAI FOOD & SRI 18.29 -43.37 SRI THAI FOOD -F SRI/F 18.29 -43.37 TUNTEX THAILAND TUNTEX 252.49 -41.58 TUNTEX THAILAN-F TUNTEX/F252.49 -41.58 UNIVERSAL STARCH USC 103.61 -48.62 UNIVERSAL STAR-F USC/F 103.61 -48.62 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. 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 ***