/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/081203.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 Wednesday, December 3, 2008, Vol. 11, No. 240 Headlines A U S T R A L I A A.C.N 119 934 806: Inability to Pay Debts Prompts Wind-Up ANDREW SNEDDON: Enters Wind-Up Proceedings ATHELSTANE PTY: Commences Liquidation Proceedings AUSTRALIAN SAFETY: Members and Creditors Hear Wind-Up Report CADOFONE PTY: Placed Under Voluntary Liquidation CLEARSPAN AWNINGS: To Declare Dividend on December 9 E & R TORRESAN: Members and Creditors Hear Wind-Up Report EXCELSIOR MANAGEMENT: Members and Creditors Hear Wind-Up Report EXCELSIOR PRINTING: Commences Liquidation Proceedings GLOBAL MACHINERY: Goes Into Receivership After Losing Contract L & T PROJECT: Commences Liquidation Proceedings LMHF PTY: Placed Under Voluntary Liquidation LUDONI HOLDINGS ET AL: Members and Creditors Hear Wind-Up Report MARRICKVILLE BOWLING: To Declare Dividend on December 13 OZ MINERALS: Extends Trade Suspension Amid Debt Refinancing Talks PARRAMATTA SECURITY: Members and Creditors Hear Wind-Up Report RIVERSTONE DISTRICT: Commences Liquidation Proceedings STANMORE CORPORATION: Commences Liquidation Proceedings SUPERTALENT NETWORK: Court Enters Wind-Up Order C H I N A BEIJING CENTERGATE: Chairman Under Economic Crime Probe H O N G K O N G AMERICAN INT'L: Sells AIG Private Bank to Aabar Investments BSI INTERNATIONAL: Members' Final Meeting Set for January 7 CHEER CORPORATION: Creditors' Proofs of Debt Due on December 31 COUNTRY GARDEN: S&P Downgrades Corporate Credit Rating to 'BB+' FIRM STEP: Placed Under Voluntary Liquidation HB-2007: Moody's Withdraws Ratings on $80 Million 2012 Notes IT'S ACADEMIC: Placed Under Voluntary Liquidation NEW JAPAN: Members' Final Meeting Set for December 31 OLD MUTUAL: Final Meeting Set for December 29 SEKAI ENTERPRISES: Creditors' Proofs of Debt Due on December 30 THE WHITNEY: Inability to Pay Debts Prompts Wind-Up ZAREMBO LIMITED: Requires Creditors to File Claims by December 29 I N D I A BHARAT INDUSTRIAL: Weak Financial Risk Profile Cues CRISIL's 'P4' GENERAL MOTORS: Banks on Investment in India for Growth GENERAL MOTORS: More Cuts Needed to Win Gov't Loan, Says Conway HIGHRISE ROLLER: CRISIL Rates Rs.80MM Cash Credit Limits at 'BB+' KONASEEMA GAS: CRISIL Rates Rs.12.59 Bil. Term Loan at 'B' SHIV SHAKTI: Bank Loan Gets CRISIL's 'P4' Rating TATA MOTORS: Offers Public 11% Annual Interest on 3-Year Deposits TATA MOTORS: Total Vehicle Sales Decline by 30% in October * INDIA: ASSOCHAM Seeks Gov't. Relief Package for Exporters I N D O N E S I A PT MOBILE-8: Moody's Cuts CFR and Senior Unsecured Rating to 'Ca' J A P A N ASAHI MUTUAL: S&P Keeps 'BB+' Long-Term Counterparty Rating DELPHI CORP: Court Allows Reargument of Fraud Claim Order DELPHI CORP: Court Gives Go Signal for Auction of Exhaust Business DELPHI CORP: Delays Hearing on Bankruptcy Exit Plan to Dec. 17 DELPHI CORP: Gets Six Months Extension of US$4.35-Bil. DIP Loan DELPHI CORP: Tranche C Lenders, et al., Balk at DIP Loan Extension FORD MOTOR: To Cut CEO's Pay Package & Focus on Making Small Cars GKL JAC: Fitch Cuts 5 Classes of Bonds Due to Replacement Delays JAPAN GENERAL: Cancels Plan to Hire 53 Staff NOMURA HOLDINGS: Eyes JPY500 Bil. Pretax Profit in March 2011 * JAPAN: BOJ Sets Measures to Ease Tight Corporate Credit N E W Z E A L A N D ACP LTD ET AL: Creditors' Proofs of Debt Due on December 9 ATOMIX NEW ZEALAND: Appoints Shephard and Dunphy as Liquidators DOMINION FINANCE: Investors Approve Unit's Debt Moratorium EASTSIDE TRUSTEE: Court to Hear Wind-Up Petition on December 19 GARLANDS DESIGN: Liquidates Business After 52 Years JOURDAN DEVELOPMENTS: Court Hears Wind-Up Petition LEAH EVANS: Court to Hear Wind-Up Petition on January 28 LITHO SERVICES: Commences Liquidation Proceedings MAINLAND SALES: Court Hears Wind-Up Petition PILE SERVICES: Court to Hear Wind-Up Petition on December 8 RELSON LTD: Court Hears Wind-Up Petition STRATEGIC FINANCE: Trustee and Banker Agree on Proposed Moratorium TE ROOPU: Court Hears Wind-Up Petition THE ULTIMATE: Appoints Shephard and Dunphy as Liquidators * NEW ZEALAND: Housing Consent in October Lowest Since 1992 S I N G A P O R E H & Q ASIA: Requires Creditors to File Claims by December 29 HOCK BEE: Wind-Up Petition Hearing Set for December 12 HQO DESIGN: Court to Hear Wind-Up Petition on December 12 SUNRISE F & B: Creditors' Proofs of Debt Due on December 28 SUPERIOR MODULAR: Creditors' Proofs of Debt Due on January 9 S R I L A N K A SRI LANKA TELECOM: Fitch Maintains 'B+' Issuer Default Rating X X X X X X X X * Detroit Three In Talks With Union to Stop Idled Worker Payment * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= A.C.N 119 934 806: Inability to Pay Debts Prompts Wind-Up --------------------------------------------------------- The members of A.C.N 119 934 806 Pty Limited met on Sept. 10, 2008, and resolved to voluntarily liquidate the company's business due to its inability to pay debts when it fall due. The company's liquidator is: Robert Moodie c/o Rodgers Reidy 333 George Street, Level 8 Sydney NSW 2000 ANDREW SNEDDON: Enters Wind-Up Proceedings ------------------------------------------ The shareholders of Andrew Sneddon Pty Limited met on Sept. 24, 2008, and resolved to voluntarily liquidate the company's business. The company's liquidator is: John Crouch GPO Box 4395 Sydney NSW 2001 ATHELSTANE PTY: Commences Liquidation Proceedings ------------------------------------------------- The shareholders of Athelstane Pty Limited met on Sept. 24, 2008, and resolved to voluntarily liquidate the company's business. The company's liquidator is: John Crouch GPO Box 4395 Sydney NSW 2001 AUSTRALIAN SAFETY: Members and Creditors Hear Wind-Up Report ------------------------------------------------------------ The members and creditors of Australian Safety Training Services Pty Ltd met on November 14, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Robyn Erskine Peter Goodin Brooke Bird Insolvency Practitioners 471 Riversdale Road Hawthorn East VIC 3123 Telephone:(03) 9882 6666 CADOFONE PTY: Placed Under Voluntary Liquidation ------------------------------------------------ During a general meeting held on September 24, 2008, the members of Cadofone Pty Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: C. Wykes Lawler Partners Chartered Accountants 1 O'Connell Street, Level 9 Sydney NSW 2000 CLEARSPAN AWNINGS: To Declare Dividend on December 9 ---------------------------------------------------- Clearspan Awnings Pty Limited, which is in liquidation, will declare dividend on December 9, 2008. Only creditors who were able to file their proofs of debt by November 5, 2008, will be included in the company's dividend distribution. The company's liquidator is: R. G. Tolcher Lawler Partners Chartered Accountants 763 Hunter Street Newcastle West NSW 2302 Telephone:(02) 4962 2294 Facsimile:(02) 4962 2290 E & R TORRESAN: Members and Creditors Hear Wind-Up Report --------------------------------------------------------- The members and creditors of E & R Torresan Pty Ltd met on November 19, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Robyn Erskine Peter Goodin Brooke Bird Insolvency Practitioners 471 Riversdale Road Hawthorn East VIC 3123 Telephone:(03) 9882 6666 EXCELSIOR MANAGEMENT: Members and Creditors Hear Wind-Up Report --------------------------------------------------------------- The members and creditors of Excelsior Management Services Pty Ltd met on November 17, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Robyn Erskine Peter Goodin Brooke Bird Insolvency Practitioners 471 Riversdale Road Hawthorn East VIC 3123 Telephone:(03) 9882 6666 EXCELSIOR PRINTING: Commences Liquidation Proceedings ----------------------------------------------------- The members and creditors of Excelsior Printing Works Pty Ltd met on November 17, 2008, and resolved to voluntarily liquidate the company's business. The company's liquidators are: Robyn Erskine Peter Goodin Brooke Bird Insolvency Practitioners 471 Riversdale Road Hawthorn East VIC 3123 Telephone:(03) 9882 6666 GLOBAL MACHINERY: Goes Into Receivership After Losing Contract -------------------------------------------------------------- Global Machinery Company (GMC) has gone into receivership, the Herald Sun reports. KordaMentha has been appointed receivers and managers to the company. The Herald Sun relates that GMC lost a major sales contract with Bunnings two months ago that sliced almost AU$100 million off GMC's turnover, which once stood at AU$250 million and delivered net profit of about AU$25 million. According to the report, Leanne Chesser of KordaMentha said GMC's turnover was US$100 million and the group held numerous valuable patents and trademarks. "Our objective will be to sell the business as a going concern and we are seeking immediate expressions of interest," the report quotes Ms. Chesser as saying. GMC, the report says, was unable to service debt of about AU$50 million with its bank Westpac on Monday, December 1, calling in administrators. Established in 1997, GMC (Global Machinery Company) manufactures and imports power tools for the do-it-yourself and retail hardware. The company exports its products to countries including the US, Britain, Poland, Spain, France and Germany. GMC employs 45 people and sells brands including GMC, Triton and Redeye. L & T PROJECT: Commences Liquidation Proceedings ------------------------------------------------ The shareholders of L & T Project Management Pty Limited met on September 24, 2008, and resolved to voluntarily liquidate the company's business. The company's liquidator is: John Crouch GPO Box 4395 Sydney NSW 2001 LMHF PTY: Placed Under Voluntary Liquidation -------------------------------------------- The members of LMHF Pty Ltd met on October 3, 2008, and resolved to voluntarily liquidate the company's business. The company's liquidator is: Nicholas Crouch Crouch Amirbeaggi, Insolvency Accountants Level 28, 31 Market Street Sydney NSW 2000 LUDONI HOLDINGS ET AL: Members and Creditors Hear Wind-Up Report ---------------------------------------------------------------- On November 14, 2008, Ozem Kassem, presented a wind-up report and property disposal for the members and creditors of these companies: -- Ludoni Holdings Pty Limited; -- Selmon Pty Limited; and -- A.C.N. 105 230 206 The Liquidator can be reached at: Ozem Kassem Cor Cordis Chartered Accountants 76-80 Clarence Street, Level 10 Sydney Telephone:(02) 8221 8433 Facsimile:(02) 8221 8422 MARRICKVILLE BOWLING: To Declare Dividend on December 13 -------------------------------------------------------- Marrickville Bowling & Recreation Club Ltd will declare dividend on December 13, 2008. Only creditors who were able to file their proofs of debt by November 4, 2008, will be included in the company's dividend distribution. The company's deed administrator is: John Vouris Lawler Partners Chartered Accountants 1 O'Connell Street, Level 9 Sydney NSW 2000 OZ MINERALS: Extends Trade Suspension Amid Debt Refinancing Talks ----------------------------------------------------------------- OZ Minerals Limited has taken the extraordinary step of suspending trading in its shares until December 29 as it scrambles to refinance some of its debt, the Herald Sun reports. In a regulatory filing to the Australian Securities Exchange, OZ Minerals said it has not been able to extend the time by which it is required to refinance facilities in the amount of US$560 million to January 31, 2009, as it was seeking to do. The company said it has accepted an offer from its lenders to extend the date by which it is required to refinance these facilities to December 29, 2008, with an option, subject to certain conditions being satisfied, for the extension to run until December 29, 2008, but given continuing volatility in commodity markets and state of global crisis market, believes there is a risk it may have to exercise the option to extend the refinancing date to January 31, 2009. The company added that it requires time to continue negotiations with the counter-parties to the refinancing and believes that these negotiations may be jeopardized if they took place during a period of potentially extreme share price volatility. According to the Herald, banks on the syndicate include ANZ, BOS International, NAB, Royal Bank of Scotland, Commonwealth Bank and Societe Generale. Citing sources close to the talks with the syndicate, the Herald relates BOS International was presenting the biggest obstacle to the refinancing of the facility. A subsidiary of the troubled HBOS group, BOS International is now reining in lending exposures around the world under a program to stabilize its balance sheet. About OZ Minerals OZ Minerals Limited, formerly Oxiana Limited, -- http://www.ozminerals.com/-- is an Australia-based mining company. The company is a producer of zinc, copper, lead, gold and silver. OZ Minerals was formed through a merger of Australia- based international mining companies Oxiana Limited and Zinifex Limited. The company has five mining operations located in Australia and Asia, three new mining projects in development and a portfolio of advanced and early-stage exploration projects throughout Australia, Asia and North America. Its projects include the Century mine in Queensland, Sepon copper operation in Laos, the gold operation at Sepon, the Golden Grove underground base and precious metals mine in Western Australia, the Rosebery mine in Tasmania, the Avebury nickel mine in Tasmania, the Prominent Hill copper-gold project in South Australia, the Martabe gold project in Indonesia, the Dugald River deposit in Queensland, and the Izok Lake and High Lake copper and zinc deposits in the Nunavut territories of Canada. PARRAMATTA SECURITY: Members and Creditors Hear Wind-Up Report -------------------------------------------------------------- The members and creditors of Parramatta Security Pty Limited met on November 14, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ozem Kassem Cor Cordis Chartered Accountants 76-80 Clarence Street, Level 10 Sydney Telephone:(02) 8221 8433 Facsimile:(02) 8221 8422 RIVERSTONE DISTRICT: Commences Liquidation Proceedings ------------------------------------------------------ During a general meeting held on September 14, 2008, the members of Riverstone District Bowling & Recreation Club Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Rowena Margaret Sigelski Lawler Partners, Chartered Accountants 763 Hunter Street Newcastle West NSW 2302 STANMORE CORPORATION: Commences Liquidation Proceedings ------------------------------------------------------- At an extraordinary general meeting held on September 30, 2008, the members of Stanmore Corporation Pty Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Peter Robert Vince Vince & Associates, Chartered Accounts 51 Robinson Street Dandenong Vic SUPERTALENT NETWORK: Court Enters Wind-Up Order ----------------------------------------------- On October 1, 2008, the Supreme Court of New South Wales entered an order to have Supertalent Network Pty Ltd's operations wound up. The company's liquidator is: Sule Arnautovic Jirsch Sutherland GPO Box 4256 Sydney NSW 2001 Telephone:(02) 9236 8333 Facsimile:(02) 9236 8334 email: admin@jirschsutherland.com.au ========= C H I N A ========= BEIJING CENTERGATE: Chairman Under Economic Crime Probe ------------------------------------------------------- Beijing Centergate Tech (Holding) Co said that its Chairman and President Xu Zhongmin was being investigated in suspicion of economic crime, Pan Xiaoyi of Shanghai Daily reports. The report relates that the company's major shareholder Huang Guangyu, chairman of Gome Electrical Appliances Co, was also detained over alleged economic crime and for reportedly manipulating Centergate's shares. According to the Daily, a spokesman for the China Securities Regulatory Commission confirmed that the inquiry into share trading by Sanlian Commercial Co and Centergate had found that the Beijing Pengrun Investment Co, owned by Huang, had acted suspiciously in restructuring listed companies and replacing assets. Chairman and President Xu has appointed Director Wei Qiuli and Vice President Zhou Ning to run the company during the investigation, the report says citing a company statement released on Sunday. The company could not estimate the impact on the its business. Beijing Centergate, the Daily says, slumped 9.89 percent on Monday, December 1, on the first trading day since it halted trading on November 24, a sharp contrast with the 2.83 percent daily gain of the Shenzhen Composite Index. Beijing Centergate Technologies (Holding) Co., Ltd. is principally engaged in the development of real estate and the construction of buildings. The company is also involved in property management, software development and the provision of advertising services. During the year ended December 31, 2007, the company obtained approximately 84% of its total revenue from the building construction and real estate development business. The company mainly operates its businesses in Beijing, China. As of December 31, 2007, the company had seven major subsidiaries and one major associate. =============== H O N G K O N G =============== AMERICAN INT'L: Sells AIG Private Bank to Aabar Investments ----------------------------------------------------------- American International Group Inc. has agreed to sell its wholly owned subsidiary AIG Private Bank Ltd. to Aabar Investments PJSC (Aabar), a global investment company based in Abu Dhabi, the company said in a statement Monday. Bloomberg News relates AIG sold the bank unit for 307 million Swiss francs (US$254 million). Under its new ownership, AIG Private Bank will become an independent financial institution, headquartered in Switzerland along with branches and representative offices in Hong Kong, Shanghai, Singapore and Dubai. AIG Private Bank will conduct its business under a new name and will continue to focus on providing wealth management services to high net worth individuals in Switzerland, Western and Eastern Europe, Asia and the Middle East. "We have looked very thoroughly at AIG Private Bank and are impressed by the professionalism and dedication of the management team and staff. This transaction represents a great opportunity to leverage AIG Private Bank's expertise in wealth management and to further develop it in our region. AIG Private Bank provides us with a platform with the potential for significant long-term growth and value creation," said H.E. Khadem Al Qubaisi, Chairman of Aabar and future designated Chairman of the bank. "We are proud and delighted that we have found a strong and internationally renowned investor such as Aabar to support the future development of our bank. This sends a clear message to our customers that we will continue to be a trustworthy, reliable and competent partner for them," said Eduardo Leemann, CEO of AIG Private Bank. "It also offers us new opportunities to expand our operations, especially in the Middle East," Mr. Leemann added. He and his senior management team will remain with the bank. The transaction is subject to satisfaction of certain conditions, including approvals by appropriate regulatory authorities. Blackstone Advisory Services provided financial advice to AIG in connection with AIG's global restructuring program. UBS Investment Bank acted as financial advisor and Lenz & Staehelin served as legal counsel to AIG on this transaction. About Aabar Investments Headquartered in Abu Dhabi, United Arab Emirates, Aabar Investments PJSC (ABD:AABAR), fka Aabar Energy PJSC -- http://www.aabar.com/-- is a United Arab Emirates-based public joint stock company engaged, together with its subsidiaries, in investment activities in the fields of commercial and industrial projects, oil and gas exploration and production, and oil well drilling. The Company's operations cover the Middle Eastern, North African and Southeast Asian markets. The Company has two wholly owned subsidiaries: Dalma Energy LLC, a United Arab Emirates-based company that owns and operates oil well drilling rigs and equipment, provides related manpower for drilling operations to the oil and gas industry, and leases drilling rigs and equipment, and Pearl Energy Limited, which is a Singapore- based company engaged in the exploration of oil and gas, as well as in investment activities in Southeast Asian countries. About American International Group Based in New York, American International Group, Inc. (AIG) is the leading international insurance organization with operation in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. During the third quarter of 2008, requirements to post collateral in connection with AIG Financial Products Corp.'s credit default swap portfolio and other AIGFP transactions and to fund returns of securities lending collateral placed stress on AIG's liquidity. AIG's stock price declined from US$22.76 on Sept. 8, 2008, to US$4.76 on Sept. 15, 2008. On that date, AIG's long-term debt ratings were downgraded by Standard & Poor's, a division of The McGraw-Hill Companies, Inc., Moody's Investors Service and Fitch Ratings, which triggered additional requirements for liquidity. These and other events severely limited AIG's access to debt and equity markets. On Sept. 22, 2008, AIG entered into an US$85 billion revolving credit agreement with the Federal Reserve Bank of New York and, pursuant to the Fed Credit Agreement, AIG agreed to issue 100,000 shares of Series C Perpetual, Convertible, Participating Preferred Stock to a trust for the benefit of the United States Treasury. At Sept. 30, 2008, amounts owed under the facility created pursuant to the Fed Credit Agreement totaled US$63 billion, including accrued fees and interest. Since Sept. 30, AIG has borrowed additional amounts under the Fed Facility and has announced plans to sell assets and businesses to repay amounts owed in connection with the Fed Credit Agreement. In addition, subsequent to Sept. 30, 2008, certain of AIG's domestic life insurance subsidiaries entered into an agreement with the NY Fed pursuant to which the NY Fed has borrowed, in return for cash collateral, investment grade fixed maturity securities from the insurance subsidiaries. On Nov. 10, 2008, the U.S. Treasury agreed to purchase, through its Troubled Asset Relief Program, US$40 billion of newly issued AIG perpetual preferred shares and warrants to purchase a number of shares of common stock of AIG equal to 2% of the issued and outstanding shares as of the purchase date. All of the proceeds will be used to pay down a portion of the Federal Reserve Bank of New York credit facility. The perpetual preferred shares will carry a 10% coupon with cumulative dividends. AIG and the Fed also agreed to revise the existing FRBNY credit facility. The loan terms were extended from two to five years to give AIG time to complete its planned asset sales in an orderly manner. The equity interest that taxpayers will hold in AIG, coupled with the warrants, will total 79.9%. At Sept. 30, 2008, AIG had US$1.022 trillion in total consolidated assets and US$950.9 billion in total debts. Shareholders' equity was US$71.18 billion, including the addition of US$23 billion of consideration received for preferred stock not yet issued. BSI INTERNATIONAL: Members' Final Meeting Set for January 7 ----------------------------------------------------------- The members of BSI International Limited will hold their final meeting on January 7, 2009, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at Room 2429, 24th Floor of Sun Hung Kai Centre, 30 Harbour Road, in Wanchai, Hong Kong. CHEER CORPORATION: Creditors' Proofs of Debt Due on December 31 --------------------------------------------------------------- The creditors of Cheer Corporation Limited are required to file their proofs of debt by December 31, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Nov. 18, 2008. The company's liquidator is: Cheuk Yee Man 113 Argyle Street Room 2810, 28th Floor Kowloon COUNTRY GARDEN: S&P Downgrades Corporate Credit Rating to 'BB+' --------------------------------------------------------------- Standard & Poor's Ratings Services said that it had lowered its long-term corporate credit rating on Country Garden Holdings Co. Ltd. to 'BB+' from 'BBB-'. The outlook is stable. At the same time, Standard & Poor's lowered its issue rating on the company's US$600 million convertible bonds due 2013 to 'BB+' from 'BBB-'. "The rating action reflects the risk that Country Garden's debt service ratios in 2008 are unlikely to be as strong as S&P previously expected," said S&P's credit analyst Bei Fu. "The company's financial metrics are likely to be more in line with those of 'BB'-rated peers, although its liquidity is better than the wider peer group's." The general slowdown in the Chinese real estate market partly contributed to the deterioration of the company's financial profile from its strong 2007 levels. Country Garden's large exposure to Guangdong province, the worst-hit property market in China in the past year, has exacerbated the situation. S&P expects the majority of the company's revenue and contracted sales in 2008 to continue to be derived from Guangdong, even though 59% of its 46 million square meter land bank was situated outside the province as of June 30, 2008. Execution risk remains high as Country Garden continues to enter less-developed new markets, some of which have small populations and limited affordability levels. Although the company has made progress in new markets -- it launched a total of 19 projects outside of Guangdong in 2008, including in five new provinces, one municipality, and one autonomous region -- it has yet to establish a track record and market position outside its home market, particularly under challenging market conditions. Positively, S&P acknowledge that Country Garden now has a more diversified contracted sales mix. S&P expects about 25% of its contracted sales to come from outside Guangdong in 2008, compared with an immaterial amount a year ago. The company has projects on sale in seven provinces, one municipality, and one autonomous region, with satisfactory sales in some areas, which have helped the company build its brand in those markets. Standard & Poor's expects Country Garden's financial performance to weaken substantially in 2008, but the company should remain one of the strongest Chinese property developers. Its results for the first six months of 2008 were good, as the majority of revenue came from properties presold in 2007, which was close to the peak of the market. Expenses have been rising due to a large number of "young" projects acquired in the past two years. For full-year 2008, S&P expects the company to achieve contracted sales of Chinese renminbi 16 billion, EBITDA interest coverage of more than 6x, and a ratio of debt to EBITDA of less than 2.5x. FIRM STEP: Placed Under Voluntary Liquidation --------------------------------------------- At an extraordinary general meeting held on November 20, 2008, the shareholders of Firm Step Toys Manufacture Limited resolved to voluntarily liquidate the company's business. The company's liquidators are: Li Kwok On Gilbert Washington Hoosang Chun Wo Commercial Centre, 10th Floor 23-29 Wing Wo Street Central, Hong Kong HB-2007: Moody's Withdraws Ratings on $80 Million 2012 Notes ------------------------------------------------------------ Moody's Investors Service has withdrawn its rating of one class of notes for HB-2007. The issuer purchased all of the notes on Nov. 21, 2008, and subsequently the notes have been canceled. This rating action is: (1) $80,000,000 Series 4 Secured Variable-Rate Notes due 2012 -- Current Rating: WR -- Prior Rating: C -- Prior Rating Date: Oct. 31, 2008 IT'S ACADEMIC: Placed Under Voluntary Liquidation ------------------------------------------------- At an extraordinary general meeting held on November 18, 2008, the members of It's Academic (Asia) Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Francis Young Tung Wai Commercial Building, 20th Floor 109-111 Gloucester Road Wanchai, Hong Kong NEW JAPAN: Members' Final Meeting Set for December 31 ----------------------------------------------------- The members of New Japan Securities International (Hong Kong) Limited will hold their final meeting on December 31, 2008, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at the 35th Floor of One Pacific Place, in 88 Queensway, Hong Kong. OLD MUTUAL: Final Meeting Set for December 29 --------------------------------------------- The sole member of Old Mutual (Hong Kong) Limited will hold final meeting on December 29, 2008, at 10:00 a.m., at the 8th Floor of Gloucester Tower, The Landmark, in 15 Queen's Road Central, Hong Kong. At the meeting, Thomas Andrew Corkhill, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SEKAI ENTERPRISES: Creditors' Proofs of Debt Due on December 30 --------------------------------------------------------------- The creditors of Sekai Enterprises Limited are required to file their proofs of debt by December 30, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Nov. 18, 2008. The company's liquidator is: Francis Young Tung Wai Commercial Building, 20th Floor 109-111 Gloucester Road Wanchai, Hong Kong THE WHITNEY: Inability to Pay Debts Prompts Wind-Up --------------------------------------------------- At an extraordinary general meeting held on November 20, 2008, the members of The Whitney Group (Asia) Limited resolved to voluntarily liquidate the company's business due to its inability to pay debts when it fall due. The company's liquidators are: Lau Wu Kwai King Lauren Yuen Tsz Chun Frank Messrs. Kennic L.H. Lui & Co. Ho Lee Commercial Building, 5th Floor 38-44 D'Aguilar Street Central, Hong Kong ZAREMBO LIMITED: Requires Creditors to File Claims by December 29 ----------------------------------------------------------------- The creditors of Zarembo Limited are required to file their proofs of debt by December 29, 2008, to be included in the company's dividend distribution. The company's liquidators are: Robert Michael James Atkinson Chim Foong Heng Two Pacific Place, 35th Floor 88 Queensway Hong Kong ========= I N D I A ========= BHARAT INDUSTRIAL: Weak Financial Risk Profile Cues CRISIL's 'P4' ----------------------------------------------------------------- CRISIL has assigned its bank loan ratings of 'P4' to the various bank facilities of Bharat Industrial Enterprises Ltd (BIEL). Rs.450.0 Million Export Packing Credit P4(Assigned) Rs.100.0 Million Bank Guarantee / Letter P4(Assigned) of Credit* * includes proposed limit of Rs.70.0 million. The ratings reflect the Bharat group's weak financial risk profile on account of the working capital intensive nature of its business, small size of operations, and exposure to risks relating to revenue concentration, changes in government policy, and prices of raw materials. These rating weaknesses are, however, partly offset by the healthy growth prospects of the rice industry and the group's improving operating efficiency. CRISIL has combined the business and financial risk profiles of BIEL and Shiv Shakti Rice Mills (SSRM), together referred to as the Bharat group, as part of this rating exercise. This is on account of the common ownership and management that BIEL and SSRM share, and the strong business linkages between them: BIEL outsources a major part of its milling requirement to SSRM on a job work basis, and enjoys an extended credit period with SSRM. About BIEL Promoted by Mr. Panna Lal Gupta as a partnership firm in 1969, BIEL became a public limited company in 1997. BIEL is engaged in milling, processing and selling basmati rice. The company also undertakes rice trading, whereby it exports rice purchased from small rice mills after sorting; it also operates a petrol pump at Taraori (Karnal), Haryana. The milling capacity of BIEL's plant at Taraori is being expanded to 4 tonnes per hour (tph) from 2 tph; BIEL also has a sorting capacity of 8 tph. The milling capacity of its associate company, SSRM, is being expanded to 8 tph from 6 tph. SSRM also has a sorting capacity of 8 tph. BIEL also operates a petrol pump in Taraori. The group reported a profit after tax (PAT) of Rs.13 million on net sales of Rs.1,681 million in 2007-08, as against a PAT of Rs.4 million on net sales of Rs.1,126 million for the previous year. GENERAL MOTORS: Banks on Investment in India for Growth ------------------------------------------------------- Despite slowing demand, General Motors Corp. will push through with its investment plans in India, Bloomberg News reports. "Emerging markets are the obvious growth areas for the auto industry," Karl Slym, managing director of GM's Indian unit, told Bloomberg Television, adding that the company's plans for India "remain solid." Bloomberg News says GM, which is building factories in India to counter declining sales in the U.S., has invested US$1 billion in India and is also spending more than US$200 million to set up an engine plant. GM, the report relates, has two factories in the country with a capacity to produce 225,000 vehicles every year, which it plans to raise to 300,000 a year. "Our activities are already funded and we move ahead with our plan as it is," Mr. Slym was quoted by Bloomberg News as saying. Bloomberg News recalls GM said last month it will fall short of its India sales target this year as higher loan rates and slower economic growth damp demand. The automaker now expects to sell as many as 78,000 vehicles in the country this year compared with a previous target of 90,000. Sales totaled 60,032 vehicles last year, the report states. Still, the report says, the automaker expects to more than double its market share in India to 10 percent by the end of 2010, from a 3.8 percent share in the fiscal year ended March 2008. 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 Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. As reported in the Troubled Company Reporter on Nov. 10, 2008, General Motors Corporation's balance sheet at Sept. 30, 2008, showed total assets of $110.425 billion, total liabilities of $170.3 billion, resulting in a stockholders' deficit of $59.9 billion. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. to 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the company's rapidly diminishing liquidity position. Given the current liquidity level of $16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. 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. GENERAL MOTORS: More Cuts Needed to Win Gov't Loan, Says Conway --------------------------------------------------------------- General Motors Corp., Ford Motor Co., and Chrysler LLC must implement more cuts, The Wall Street Journal reports, citing restructuring firm Conway MacKenzie & Dunleavy senior managing director Van Conway. "I think you need to demonstrate sincerely that you are doing the very painful cuts -- white collar, blue collar, plant closings. They need to really look like they're suffering on the expense line so people believe they can make it," WSJ quoted Mr. Conway as saying. According to WSJ, Ford Motor and GM directors met separately on Monday to vote on their viability plans to be presented to the Congress on Tuesday, to try to win support for US$25 billion in low- cost loans from the federal government. Chrysler LLC top executives, WSJ relates, were finalizing their own plan to show that it can survive and return to profitability with government aid, after its private-equity owner Cerberus Capital Management LP reviewed the plan on Monday. A source said that Ford Motor and GM would be willing to seek further cost-cuts and concessions from the United Auto Workers union, WSJ states. The report says that once GM reaches an agreement with the United Auto Workers union on any wage or benefit concessions for a rescue of the company, Chrysler, Ford Motor will also insist on a similar arrangement. GM, according to the report, owes the health care trust for retiree union workers some US$7.5 billion by 2010, which many suspect the company can't afford. Citing a source, WSJ says that UAW President Ron Gettelfinger is open to eliminating the jobs bank, which pays employees most of their wages even when they no longer work in plants, but Mr. Gettelfinger wants to see management sacrifices in return. The sacrifices, WSJ relates, would include limits on executive compensation and a retraining program that will help laid-off workers get high-tech jobs in areas like battery development for electric vehicles. WSJ relates that sources said that GM will plan more cuts to North American production capacity, an initiative to offer debt-holders equity to tidy its balance sheet, and cuts to executive pay, while aspects of the plan include goals to gain more labor concessions, and executive pay cuts. Citing a source, the report states that GM would also include in its plan cutting brands and details on new fuel-efficient vehicles and how the firm will meet new stringent federal mileage rules. The report says that GM hopes to start selling electric plug-in car Chevrolet Volt in 2010. Cerberus Capital is also interested in combining Chrysler with another firm, WSJ states. Cerberus Capital had discussed selling Chrysler to GM before the request for government aid, according to the report. Jeff Bennett at WSJ reports that Ford Motor is again considering selling its Swedish luxury vehicle maker Volvo Cars, saying on Monday that it will re-evaluate strategic options for the unit as part of a broader effort to strengthen Ford Motor's balance sheet. Ford Motor, according to WSJ, acquired Volvo Cars from Swedish truck maker AB Volvo for more than US$6.5 billion in 1999. The review could take several months, during which time Volvo Cars will continue implementing a restructuring, which includes laying off a quarter of its workforce, states WSJ. Mr. Mulally had affirmed in November this year his decision in 2007 to keep Volvo Cars after a review of the advantages of selling the unit that year, according to the report. Mr. Mulally said last month that he was still committed to restoring Volvo Cars' financial health, the report states. According to WSJ, CSM Worldwide analyst Michael Robinet doubts that Ford Motor will be able to quickly find a suitor. The report quoted Mr. Robinet as saying, "Anyone who purchases Volvo would have to have very close ties to Ford because virtually every Volvo is using a Ford platform. It will be difficult because it's not like cutting a piece of pie that's already perforated and just cracking it off. They are very integrated and it could take years." AB Volvo said on Monday that it wasn't interested in purchasing back Volvo Cars from Ford Motor, WSJ reports. WSJ relates that GM, Ford Motor, and Chrysler were also devising alternative travel plans after the Congress criticized their CEOs for using expensive corporate jets to make their way to Capitol Hill. Ford Motor said on Monday that Mr. Mulally will drive by car to Washington this time, while Chrysler said that its CEO Robert Louis Nardelli has ruled out flying by private jet, according to the report. WSJ states that if the Congress approves the requests of GM, Ford Motor, and Chrysler for government financial assistance, the lawmakers would be called back to Washington next week. Jeff Green and John Lippert at Bloomberg News report that GM, Ford Motor, and Chrysler union leaders will hold an emergency meeting on Dec. 3 at the Detroit Marriott Hotel. Citing a person familiar with the matter, the report says that participants of the meeting will be asked to reopen a 2007 labor agreement to consider concessions. Sources said that GM also wants to change how it pays for a union retiree health care fund as part of a broader cost cutting plan designed to win government aid, Bloomberg states. 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 Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. As reported in the Troubled Company Reporter on Nov. 10, 2008, General Motors Corporation's balance sheet at Sept. 30, 2008, showed total assets of US$110.425 billion, total liabilities of US$170.3 billion, resulting in a stockholders' deficit of US$59.9 billion. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. to 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the company's rapidly diminishing liquidity position. Given the current liquidity level of US$16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. 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. HIGHRISE ROLLER: CRISIL Rates Rs.80MM Cash Credit Limits at 'BB+' ----------------------------------------------------------------- CRISIL has assigned its bank loan ratings of 'BB+/Stable/P4' to the various bank facilities of Highrise Roller Flour Mills (P) Ltd. Rs.80 Million Cash Credit Limits BB+/Stable(Assigned) Rs.10 Million Bank Guarantee P4(Assigned) The ratings reflect susceptibility of Highrise's operating margins to low pricing power and changes in raw material prices and its low net worth and small size of operations. These weaknesses are, however, partly offset by the company's long-standing relationships with established clients and its prudent inventory management. Outlook: Stable CRISIL believes that Highrise will maintain its business profile backed by its established relations with customers. The outlook may be revised to 'Positive' if Highrise's operating margins improve considerably on account of diversification initiatives and other factors. Conversely, the outlook may be revised to 'Negative' if the company is unable to maintain margins at current levels. About Highrise Incorporated in 1987, Highrise is closely held and managed by the Saboo family. Highrise commenced commercial wheat processing operations in 1989 and since then, has diversified into the business of roller flour mills. Highrise's milling facility at Shibrampur in West Bengal has an installed capacity of 84,000 tonnes per annum. For 2007-08, Highrise reported a profit after tax (PAT) of Rs. 5.05 million on net sales of Rs. 588 million, as against a PAT of Rs. 3.83 million on net sales of Rs. 501 million for 2006-07. KONASEEMA GAS: CRISIL Rates Rs.12.59 Bil. Term Loan at 'B' ---------------------------------------------------------- CRISIL has assigned its rating of 'B/Stable' to the various bank facilities of Konaseema Gas Power Ltd (KGPL). Rs.12.59 Billion Term Loan B/Stable(Assigned) Rs.1 Billion Proposed Long B/Stable(Assigned) Term Bank Facility The rating reflects KGPL's weak financial risk profile, exposure to risks relating to non-availability of gas, and counter-party risks. Outlook: Stable CRISIL believes that KGPL will generate stable revenues over the medium term. The outlook may be revised to 'Positive' if the credit risk profiles of KGPL's off-takers, the Andhra Pradesh power distribution companies (APdiscoms), improve significantly. Conversely, the outlook may be revised to 'Negative' if the off- takers default on payments to KGPL and/or if the company is faced with irregular fuel supply, leading to a weakening in its operational profile. About KGPL Promoted jointly by VBC Ferro Alloys Ltd, VBC Industries Ltd, and Elgitread (India) Ltd, KGPL has set up a 445-megawatts (MW) natural gas-based combined cycle power plant at Devarapalli in AP's East Godavari district. Although construction of the plant was completed in September 2006, operations are yet to begin because of non-availability of gas. KGPL has a fuel supply agreement, valid till December 31, 2019, with Gas Authority of India Ltd for the supply of 2 million metric standard cubic metre per day of natural gas. KGPL estimates that the plant will be able to commence operations from December 31, 2008, based on supply of gas from Reliance Industries Ltd's KG basin. The company has a power purchase agreement for 15 years with the AP discoms for the sale of 80 per cent of the generated power; the remaining 20 per cent will be sold on merchant basis. SHIV SHAKTI: Bank Loan Gets CRISIL's 'P4' Rating ------------------------------------------------ CRISIL has assigned its bank loan rating of 'P4' to the bank facility of Shiv Shakti Rice Mills (SSRM). Rs.300.0 Million Export Packing Credit* P4(Assigned) * including proposed limits of Rs.140.0 million The rating reflects the Bharat group's (the group consists of SSRM and its associate company, Bharat Industrial Enterprises Ltd) weak financial risk profile on account of the working capital intensive nature of its business, small size of operations, and exposure to risks relating to revenue concentration, changes in government policy, and prices of raw materials. These rating weaknesses are, however, partly offset by the healthy growth prospects of the rice industry and the group's improving operating efficiency. CRISIL has combined the business and financial risk profiles of SSRM and Bharat Industrial Enterprises Ltd (BIEL), together referred to as the Bharat group, as part of this rating exercise. This is on account of the common ownership and management that BIEL and SSRM share, and the strong business linkages between them: BIEL outsources a major part of its milling requirement to SSRM on a job work basis, and enjoys an extended credit period with SSRM. About SSRM A partnership firm set up in 1985, by four brothers, Mr. Nathi Ram Gupta, Mr. Naresh Chand Gupta, Mr. Ramesh Chand Gupta and Mr. Rakesh Kumar Gupta, SSRM is engaged in milling, processing and selling of basmati rice. The milling capacity of its plant at Taraori (Karnal), Haryana, is being expanded to 8 tonnes per hour (tph) from 6 tph; SSRM also has a sorting capacity of 8 tph. It also processes paddy for BIEL on a job work basis. The group reported a profit after tax (PAT) of Rs.13 million on net sales of Rs.1,681 million in 2007-08, as against a PAT of Rs.4 million on net sales of Rs.1,126 million for the previous year. TATA MOTORS: Offers Public 11% Annual Interest on 3-Year Deposits ----------------------------------------------------------------- Tata Motors Ltd. will borrow from the public for the first time in 13 years as the credit crunch limits its ability to refinance loans used to acquire Jaguar and Land Rover units from Ford Motor Co. in June, Bloomberg News reports. Tata Motors will pay as much as 11 percent annual interest on three-year deposits from the public, spokesman Debasis Ray told Bloomberg News in a phone interview. The Financial Times relates the automaker said in an advertisement in an Indian newspaper Monday "Tata Motors invites deposits from the public," adding it would pay "additional interest for senior citizens, shareholders and employees". The FT says Indian companies are permitted to take fixed-term deposits from the public. According to the FT, the minimum deposit published was Rs20,000 (US$400), but the company did not say how much money it intended to raise from the move. The automaker, Bloomberg News says, needs money to replace a US$3 billion bridge loan it used to fund the US$2.4 billion purchase of the U.K.-based luxury units from Ford. "They are giving every source a shot," Bloomberg News quoted Ambrish Mishra, analyst at MF Global Sify Securities India Pvt, as saying. "They are running out of time" to refinance the bridge loan taken for the purchase, he said. Separately, Reuters reports Tata Motors said it will shut its commercial vehicle plant in the western city of Pune for three days from Dec. 5, as it tries to avoid a build-up in unsold stock amid falling sales. According to Reuters, the plant was also closed for six days last month, and the company has closed other plants on a short-term basis to manage inventory levels. Citing the Business Standard newspaper, Reuters notes the Pune plant would be shut again for three days beginning Dec 26. "That is not final. I cannot say anything about that," a Tata Motors spokesman told Reuters. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 9, 2008, Standard & Poor's Ratings Services kept its 'BB' corporate credit rating on India's Tata Motors Ltd. On CreditWatch with negative implications, pending finalization of the long-term financing plans for funding the company's purchase of Jaguar and Land Rover from Ford Motor Co. (B/Watch Neg/--). At the same time, Standard & Poor's ratings on all Tata Motors' rated debt remain on CreditWatch with negative implications. The rating on Tata Motors was lowered on April 4, 2008, to 'BB', from 'BB+', after the announcement of the agreement with Ford Motor Co. for the purchase of Jaguar and Land Rover. Tata Motors paid about US$2.3 billion in cash for Jaguar and Land Rover (comprising brands, plants, and intellectual property rights). Ford contributed US$600 million to the Jaguar-Land Rover (JLR) pension plans. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 2, 2008, Moody's Investors Service downgraded the corporate family rating of Tata Motors Ltd to B1 from Ba2. The outlook remains negative. "The rating change reflects the slowdown in demand seen in both Tata Motors Ltd's domestic and overseas markets. This translates into pressure on profitability, and happens at a time when the company has increased its leverage. Tata Motors Ltd's financial flexibility is therefore significantly weakened," Elizabeth Allen, a Moody's Vice President/Senior Credit Officer said. TATA MOTORS: Total Vehicle Sales Decline by 30% in October ---------------------------------------------------------- Tata Motors reported total sales of 32,696 vehicles (including exports) for the month of November 2008, a decline of 30% compared to 46,947 vehicles sold in November last year. Cumulative sales for the company at 3,38,110 nos., declined by 6%. Unavailability of finance, coupled with high interest rates, continues to defer customer purchases. Commercial Vehicles The company's sales of commercial vehicles in November 2008 in the domestic market were 16,229 nos., a decline of 40% compared to 26,895 vehicles sold in November last year. M&HCV sales stood at 5,792 nos., a decline of 60% over November 2007, while LCV sales were 10,437 nos., a decline of 16% over November 2007. Cumulative sales of commercial vehicles in the domestic market for the fiscal were 1,81,123 nos., a decline of 3% over 1,86,859 nos. last year. Cumulative M&HCV sales stood at 81,909 nos., a decline of 16% over last year, while LCV sales for the fiscal were 99,214 nos., a growth of 11% over last year. Passenger Vehicles The company's sales of passenger vehicles in November 2008 in the domestic market were 14,327 nos., a decline of 12% compared to 16,322 vehicles sold in November last year. The Indica range sales at 9,039 nos. declined by 13.8% over last November despite orders in hand which could not be converted into sales due to lack of financing in the market, but held close to October 2008 level of 9,484 nos. The Indigo range with sales of 3,477 nos., reported a 73% growth over November 2007. Car sales of 12,516 nos. between the Indica and the Indigo range in the month of November 2008 are marginally up, compared to car sales of 12,502 nos. in November 2007, continuing the growth uptrend registered for the first time this fiscal in October 2008. The Sumo and Safari accounted for sales of 1,811 nos., a decline of 52.6% compared to November 2007. The UV/SUV segment in the industry continues to be under pressure in the market since the July ad hoc imposition of an additional element of excise duty on vehicles having engine displacement of over 1.5 litre. Cumulative sales of passenger vehicles in the domestic market for the fiscal were 1,29,246 nos., a decline of 5.5% over 1,36,820 nos. in the same period last year. Cumulative sales of the Indica at 68,078 nos., reported a decline of 25%, with de-growth having been controlled from a peak of 32.2% in July 2008 to 13.8% in November 2008, since the launch of the Indica Vista. Cumulative sales of the Indigo family were 34,759 nos., a growth of 86%. Cumulative sales of Sumo and Safari at 26,409 nos. went into a decline of 4% for the first time this fiscal arising from a slowing down of the segment since July. Exports The company's sales from exports at 2,140 vehicles in November 2008 declined by 43% compared to 3,730 vehicles in November 2007. The cumulative sales from exports for the fiscal at 27,741 nos. declined by 22% over 35,562 nos. in the same period last year. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 9, 2008, Standard & Poor's Ratings Services kept its 'BB' corporate credit rating on India's Tata Motors Ltd. on CreditWatch with negative implications, pending finalization of the long-term financing plans for funding the company's purchase of Jaguar and Land Rover from Ford Motor Co. (B/Watch Neg/--). At the same time, Standard & Poor's ratings on all Tata Motors' rated debt remain on CreditWatch with negative implications. The rating on Tata Motors was lowered on April 4, 2008, to 'BB', from 'BB+', after the announcement of the agreement with Ford Motor Co. for the purchase of Jaguar and Land Rover. Tata Motors has paid about US$2.3 billion in cash for Jaguar and Land Rover (comprising brands, plants, and intellectual property rights). Ford has contributed US$600 million to the Jaguar-Land Rover (JLR) pension plans. As reported in the Troubled Company Reporter-Asia Pacific on December 2, 2008, Moody's Investors Service downgraded the corporate family rating of Tata Motors Ltd to B1 from Ba2. The outlook remains negative. * INDIA: ASSOCHAM Seeks Gov't. Relief Package for Exporters ----------------------------------------------------------- The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has expressed its serious concern over 12.1% decline in Indian exports in the month of October 2008 and therefore sought a relief package for exporters without any further delay. In a statement issued Monday, Mr. D S Rawat, ASSOCHAM Secretary General, said that the ASSOCHAM had already warned the government for declining exports about a month ago. The Chamber apprehensions have already turned true and urge the Ministry of Industry & Commerce to unveil its promised package for exporters so that from December onwards, the declining export trends are arrested. According to Mr. Rawat, 12.1% fall in exports is extremely steep and India cannot afford to live with it as its immediate fall out would be on job cuts. Increasing decline in exports would mean slashing of jobs and therefore, whatever package in terms of incentives to exporters are possible under existing circumstances, the government should roll them out at once, urged Mr. Rawat. ================= I N D O N E S I A ================= PT MOBILE-8: Moody's Cuts CFR and Senior Unsecured Rating to 'Ca' ----------------------------------------------------------------- Moody's Investors Service has downgraded to Ca from Caa2 PT Mobile-8 Telecom Tbk's corporate family rating and the senior unsecured rating on the US$100 million 11.25% notes due 2013 issued by Mobile-8 Telecom Finance Company B.V. The outlook on the ratings is negative. The ratings downgrade follows the company's announcement that the holders of the US dollar notes have rejected a proposed debt restructuring, and requested accelerated repayments on the US$100 million principal and unpaid interest no later than 14 business days after Nov. 26, 2008. The request for accelerated repayments follows the company's failure to launch a tender offer to redeem the US dollar notes within 30 days of the Change of Control event, therefore triggering an event of default under the notes indenture. "The downgrade to Ca reflects the fact that Mobile-8's current liquidity sources are not sufficient to cover early repayment of the notes and therefore a default on the notes after the grace period looks unavoidable" says Ivan Palacios, a Moody's AVP/Analyst. "Furthermore, a default on the company's US$ notes could trigger a cross-default on its Rupiah senior secured notes, at the option of the bondholders." As of Sept. 30, 2008, Mobile-8 had IDR681 billion (approximately US$54 million at current exchange rates) of unrestricted cash and short-term investments. The company has no committed revolving credit facility or line of credit to provide additional liquidity. In addition, in Q4 2008 Mobile-8 is expected to be significantly free cash flow negative. Mobile-8's very weak liquidity profile results from a material deterioration of the company's operations, as reflected by the IDR153 billion operating loss reported for the nine months ended September 2008, eroding market share and margins, and the inability for the company to roll out new products on a timely basis and successfully compete with larger and better capitalized Indonesian telecoms operators. The negative outlook reflects the uncertainties regarding the extent of final losses to be borne by the US$ bondholders, given their subordinated position in the capital structure. The last rating action on Mobile-8 was on Oct. 10, 2008 when the company's ratings were downgraded to Caa2 and placed under review for possible further downgrade. Established in 2002 and operating commercially since the launch of its pre-paid services in 2003, PT Mobile-8 Tbk is the fourth largest mobile cellular operator in Indonesia. It operates in the 800 MHz spectrum on a CDMA2000 1X platform. The company reported net revenues of IDR867 billion (approximately US$80 million) for the 12-month period ending Sept. 30, 2008. ========= J A P A N ========= ASAHI MUTUAL: S&P Keeps 'BB+' Long-Term Counterparty Rating ----------------------------------------------------------- Standard & Poor's Ratings Services revised to negative from stable the outlooks on its long-term counterparty and financial strength ratings on Asahi Mutual Life Insurance Co., reflecting the insurer's weakening capitalization. Amid a stagnant investment environment due to turmoil in global financial markets, latent losses from the company's marketable securities, which include its domestic equity portfolio, are increasing. At the same time, S&P affirmed its 'BB+' long-term counterparty and financial strength ratings on Asahi Life. For several years leading up to the first half of 2007, Asahi Life's capitalization relative to its risk had been improving due to the steady accumulation of retained earnings, backed by a relatively stable revenue flow. Furthermore, the recovery in Asahi Life's capitalization was given a boost by a recovery in stock prices over the past few years, which lead to an increase in latent profit from the company's stock portfolio. However, Asahi Life's relatively weak position in the market compared to industry peers means its capitalization is susceptible to market volatility. For example, the company has accumulated retained earnings relatively slowly, while its domestic equity holdings account for a large proportion of the company's capitalization level. As such, the company's latent losses from securities holdings expanded to JPY112.3 billion as at the end of September 2008, being affected by declining stock prices and the rapid appreciation of the yen since the second half of 2007. Asahi Life has taken various actions to enhance its capitalization, including reducing its holdings of domestic equities and foreign currency-denominated foreign bonds, which accounted for 7.0% and 6.2% of its general account assets as of Sept. 30, 2008, respectively; executing foreign exchange hedging arrangements; and planning an increase in "kikin", a type of subordinated debt unique to Japanese life insurers. However, S&P considers that a prudent view is required when assessing the resilience of Asahi Life's capitalization, as there is no clear prospect for an early recovery in the asset management environment. Despite continued declines in business in force, however, the company maintains a certain level of underwriting profit, supported by ample mortality gains. S&P will focus on the company's ability to enhance retained earnings by increasing profit contributions from its highly profitable third-sector products. S&P may consider a downgrade if capitalization concerns increase as a result of deterioration in revenues from the company's insurance business or continued turmoil in the financial markets, which could lead to an expansion of related losses at Asahi Life. Conversely, the outlooks may be revised to stable if the asset management environment, which includes Japan's stock market, recovers, and the company's insurance sales remain sound, thereby enhancing its capitalization. Ratings List Ratings Affirmed; CreditWatch/Outlook Action To From -- ---- Asahi Mutual Life Insurance Co. Counterparty Credit Rating Local Currency BB+/Negative/-- BB+/Stable/-- Financial Strength Rating Local Currency BB+/Negative/-- BB+/Stable/-- DELPHI CORP: Court Allows Reargument of Fraud Claim Order --------------------------------------------------------- Judge Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York has issued a ruling with respect to Appaloosa Management, L.P. and A-D Acquisition Holdings, LLC's request under Rule 9023 of the Federal Rules of Bankruptcy Procedure, and Rule 9023-1 of the Local Rules for the United States Bankruptcy Court for the Southern District of New York, for an order: (i) granting reargument of the Court's August 11, 2008, decision and, upon reargument, dismissing: * Claims One (Breach of Contract against Investors under the Equity Purchase and Commitment Agreement) and Two (Breach of Contract against the parties to the Commitment Letter Agreements) to the extent that such claims seek specific performance or damages against ADAH and AMLP in excess of US$250 million and * Claims Three (claim for all defendants to perform under Delphi's confirmed plan pursuant to Section 1142 of the Bankruptcy Code) and Four (claim of fraud against Appaloosa) as against ADAH and AMLP, and (ii) striking paragraphs 71 through 83, 129, 130, and 132 of the Complaint, which provides for, among many allegations, that even before the Court confirmed Delphi's Plan of Reorganization on Jan. 25, 2008, Appaloosa engaged in efforts to avoid its obligations under the EPCA and undermine the consummation of the Plan. In his short ruling, Judge Drain said that he is granting AMLP and ADAH's motion to reargue and strike, to the extent of hearing reargument. "The motion in all other respects, is denied," he ruled. Delphi Corp., in May 2008, sued AMLP and other parties in light of their refusal to comply with their prior agreement to provide US$2,550,000,000 in equity exit financing to Delphi. Appaloosa's termination of their EPCA stalled the consummation of Delphi's Plan of Reorganization, which was confirmed by the Court January 25, 2008, and kept Delphi in Chapter 11. The defendants to Delphi's US$2.55-billion lawsuit are: - Appaloosa Management L.P.; - A-D Acquisition Holdings, LLC; - Harbinger Del-Auto Investment Company, Ltd.; - Pardus DPH Holding LLC; - Merrill Lynch, Pierce, Fenner & Smith Incorporated; - Goldman Sachs & Co.; - Harbinger Capital Partners Master Fund I, Ltd.; - Pardus Special Opportunities Master Fund L.P.; and - UBS Securities LLC. Delphi still insists that Appaloosa wrongfully terminated the EPCA and disputes the allegations that it breached the EPCA or failed to satisfy any condition to the Investors' obligations thereunder as asserted by Appaloosa in its April 4 letter. Delphi's fraud claims rely upon the events and allegations made by Delphi in Paragraphs 71-83 of its US$2,550,000,000 lawsuit against Appaloosa and other parties. The allegations included that even before the Court confirmed Delphi's Plan of Reorganization on Jan. 25, 2008, Appaloosa engaged in efforts to avoid its obligations under the EPCA and undermine the consummation of the Plan. Appaloosa notes that while those "unsupported and incorrect allegations" have been dismissed as against every other defendant, Delphi continues to advance the false allegations as the "core" of its claims against Appaloosa. Accordingly, Appaloosa asked the Court to strike Par. 71-83. According to Reuters, Judge Drain said at a hearing on Oct. 8 that that he will reconsider Delphi's fraud claim against Appaloosa that he had earlier dismissed. "It seems to me that I was unclear in what aspects of the allegations needed to be dealt with," Judge Drain said. "I may well have been wrong." In that light, the parties submitted various memorandums that back their positions with respect to Delphi's fraudulent omission claim against Appaloosa. Delphi wants its fraudulent omission claim reinstated, citing that the claim is in compliance with Rule 9(b) of the Federal Rules of Civil Procedure. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News, Issue No. 151; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Court Gives Go Signal for Auction of Exhaust Business ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of New York approved the proposed bidding and auction procedures for the sale of Delphi Corp.'s exhaust business. The Official Committee of Unsecured Creditors in Delphi's cases says that it is particularly concerned that the sale of the exhaust business may not at that price may not benefit the Debtors, and it could be more advantageous to retain the business. The Committee, though, has not filed a formal objection to the sale, noting that its professionals have not yet had the opportunity to complete its due diligence with respect to the contemplated transaction. As reported by the Troubled Company Reporter, Delphi Corp., and its debtor affiliates Delphi Automotive Systems LLC, and Delphi Technologies, Inc., sought permission to sell their exhaust business to Bienes Turgon S.A. de C.V., subject to further market test through an auction on December 11. John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, relates that as part of its transformation plan, Delphi has identified its exhaust business as a non-core business subject to disposition. Accordingly, following broad marketing efforts, on November 10, 2008, Delphi Corp. and its debtor and non-debtor affiliates entered into a Master Sale and Purchase Agreement with Bienes Turgon S.A. de C.V. The Agreement contemplates a global divestiture of the Exhaust Business to Bienes Turgon for a purchase price of US$17 million, subject to certain adjustments. Sale of Global Exhaust Biz. Delphi's global exhaust emissions business produces a broad array of catalytic converters and related assemblies that are sold globally and used in a variety of gas and diesel emissions control applications. The company began making catalytic converters in 1974 as the AC Spark Plug division of GM and at the time of the Spin-Off, the operations became part of Delphi. The Exhaust Business is part of Delphi's Powertrain business, a core business of the Company. The Exhaust Business has a global platform with operations at six primary manufacturing sites in Australia, China, India, Mexico, Poland, and South Africa, all of which -- other than the Mexican and South African sites -- also manufacture other Delphi products. Except for the Mexican site where Delphi Entities hold a minority interest in one joint venture, Katcon S.A. de C.V., all sites are wholly-owned or controlled by the Delphi Entities. Sixty percent of the Katcon joint venture is owned by Bienes Turgon and 40% is owned by Delphi Corp's non-Debtor affiliate, Delphi Controladora, S.A. de C.V. Delphi Automotive Systems (Holding), Inc. owns 99.99% of DCSA, and Delphi International Holdings Corp. owns .01% of DCSA. Both DASHI and DIH are Debtors. Pursuant to this transaction, the applicable non-Debtor Seller will be selling its equity interest in Katcon. In addition to certain engineering capabilities at the manufacturing sites, the Exhaust Business also has engineering resources located at technical centers in Luxembourg and Michigan where engineering personnel carry out their responsibilities to develop and test the Exhaust Business' products and associated processes. The dedicated workforce for the Exhaust Business is comprised of approximately 135 salaried and 158 hourly employees. Of these employees, 23 are U.S. employees, all of whom are salaried employees (primarily engineers). The Exhaust Business is benefiting because of increasingly stringent regulatory exhaust emission requirements in the global market which aim to reduce noxious emissions. For the year ended December 31, 2007, the Exhaust Business achieved revenue of US$294.4 million and EBITDA of US$19.1 million on a pro-forma basis, excluding certain Delphi Because of the increasingly stringent environmental requirements, the company believes that with the right buyer, the Exhaust Business has strong growth prospects. The revenue from the Exhaust Business is comprised of two different value streams: (i) 76% is through a customer-directed purchase process through which the Delphi Entities obtain catalyst material from a specified supplier and pass it to the customer, receiving a handling fee but not otherwise adding value to the product and (ii) 24% is generated from sale of product to which Delphi has added content, thereby increasing its value. Nearly two-thirds of the Exhaust Business sales are to GM and its affiliates, virtually all of which is sold outside of the U.S. In addition to its customer relationship with GM, the Exhaust Business has customer relationships with many other leading original equipment manufacturers, including AvtoVAZ, Brilliance, Ford, and Renault. Bidding Procedures The Sale of the Exhaust Business would be subject to higher or otherwise better offers. The Debtors propose a December 8, 2008 at 11 a.m. (prevailing Eastern time) deadline to submit bids for the Exhaust Business. In light of the short timeframe, the Debtors are commencing the process of contacting potential bidders and will open the virtual data room to such parties even prior to Nov. 24 hearing. Bids must at least have a value equal to the purchase price plus the amount of the Break-Up Fee, plus US$650,000 (approximately US$18,160,000). If the Selling Debtor Entities receive at least one "qualified bid" in addition to that of the Bienes Turgon, they would conduct an auction on December 11, 2008. Delphi will seek approval of the sale to Bienes Turgon or to the winning bidder on December 17, 2008 at 10:00 a.m. Objections are due December 10, 2008 at 4:00 p.m. A full-text copy of the Court-approved Bid Procedures is available for free at: http://bankrupt.com/misc/delphi_exhaust_bsns_bidprocedures.pdf About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News, Issue No. 151; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Delays Hearing on Bankruptcy Exit Plan to Dec. 17 -------------------------------------------------------------- The hearing to consider preliminary approval of the Delphi Corp.' and its affiliates' proposed modifications to their confirmed First Amended Joint Plan of Reorganization has been adjourned to 10:00 a.m. on December 17, 2008. Delphi presented to the U.S. Bankruptcy Court for the Southern District of New York changes to an already confirmed Plan after Appaloosa Management, L.P., and other investors backed out from their commitment to provide US$2.550 billion in exit financing. The new plan does not require financing from plan investors, but requires more funding from primary customer General Motors Corp., which is facing its own liquidity crisis, and US$3.75 billion from an exit debt financing and a rights offering. The Preliminary Plan Modification Hearing has been adjourned three times. Under the original schedule, the Debtors contemplated an October 23, 2008 preliminary hearing and emergence from bankruptcy by Dec. 31, 2008. Delphi Corp. has signed deals with General Motors Corp. and its DIP Lenders, led by JPMorgan Chase Bank, N.A., in order to have access to borrowed cash until mid-2009. The Debtors' financing deals mature Dec. 31, 2008. On Oct. 3, the Debtors submitted proposed modifications to their Plan of Reorganization. Under the modified plan, the Debtors targeted a Dec. 17 confirmation hearing, and a Chapter 11 exit by year-end. The modified plan does not require, in addition to US$4,700,000,000 of debt exit financing, Appaloosa's US$2,550,000,000 cash-for-equity investment, which was the highlight of the Court-confirmed, but unconsummated, Jan. 25, 2008 PoR. The modified plan requires debt exit financing of US$2.75 billion plus a US$1,000,000,000 raised through a rights offering. Delphi, however, has said that "in the face of the current unprecedented turbulence in the credit markets and uncertainty in the automobile industry," it does not anticipate emerging from chapter 11 prior to December 31, 2008, when its financing deals mature. "Despite the efforts of the federal government to provide stability to the capital markets and banks, the markets have remained extremely volatile and liquidity in the capital markets has been nearly frozen, resulting in an unprecedented challenge for the Debtors to successfully attract emergence capital funding for their Modified Plan, particularly in light of the current conditions in the global automotive industry," John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, said, in a court filing. In its third quarter report on Form 10-Q, General Motors Corp., Delphi's primary customer, admitted, "Given the current credit markets and the challenges facing the automotive industry, there can be no assurance that Delphi will be successful in obtaining US$3.8 billion in exit financing to emerge from bankruptcy." GM has recorded Delphi-related charges US$4.1 billion for nine months ended Sept. 30, 2008. GM recorded a net loss of US$2,542,000,000 on US$37,503,000,000 of revenues for three months ended Sept. 30, 2008, compared with a net loss of US$38,963,000,000 on US$43,002,000,000 of sales during the same period in 2007. General Motors, along with Ford Motor Company and Chrysler LLC, has asked Congress to grant the U.S. carmakers access to US$25 billion of the US$700 billion Troubled Asset Relief Program approved by Congress to bail out financial institutions. Congress is expected to tackle on Nov. 18 and 19 the proposed bailout, which, according to reports, may be necessary to save the U.S. automakers from collapse or bankruptcy. A bankruptcy filing for GM could shatter its former unit Delphi's plans to finally exit bankruptcy this year or early next year, according to a report by Bloomberg News. "If GM fails, it's likely the Delphi reorganization fails, and Delphi converts to a case under Chapter 7 -- a liquidation," Nancy Rapoport, a law professor at the University of Nevada-Las Vegas, in an e-mail, according to Bloomberg News. "For the creditors of Delphi, this of course isn't optimal, and the usual issues in Chapter 7, determining the liquidation value of the company, will apply." About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News, Issue No. 151; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Gets Six Months Extension of US$4.35-Bil. DIP Loan --------------------------------------------------------------- Delphi Corp. won approval from the U.S. Bankruptcy Court for the Southern District of New York to extend until June 30, 2009, the maturity date of its US$4.35 billion DIP financing, Bloomberg News reports. Delphi, according to the report, can use proceeds from its US$4.35 billion bankruptcy loan to fund operations while working to emerge from Chapter 11 protection. Delphi previously contemplated a Dec. 31, 2008 emergence from bankruptcy but has found difficulty accessing credit. Delphi in October presented to the Bankruptcy Court changes to an already confirmed Plan after Appaloosa Management, L.P., and other investors backed out from their commitment to provide US$2.550 billion in exit financing. The new plan does not require financing from plan investors, but requires more funding from primary customer General Motors Corp., which is facing its own liquidity crisis, and US$3.75 billion from an exit debt financing and a rights offering. Delphi has deferred seeking approval of the plan and has instead sought an extension if its bankruptcy loan. The Debtors, on Nov. 7, filed with the Bankruptcy Court sought authority to continue their use of the proceeds from their DIP Facility through June 30, 2009, by entering into an accommodation agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain lenders that constitute the majority of holders by amount of Delphi's two most senior tranches of its DIP Credit Facility -- the "Required Lenders". Delphi stated that while the original form of the accommodation agreement was acceptable to GM, Delphi agreed with GM to reconsider certain of the subsequent amendments agreed to between Delphi and the "required lenders" under the DIP Facility. Delphi stated its intent to engage in discussions with GM and certain of Delphi's lenders under the existing DIP financing agreement in an attempt to identify acceptable changes to the documents presented to the Court. Delphi said that when filed, the Accommodation Agreement reflected the support of the administrative agent and the anticipated support of the Required Lenders for Delphi's transformation efforts, despite the current economic downturn and the unprecedented turmoil in the capital markets. The company made various changes to the Accommodation Agreement since the Nov. 7 filing in order to obtain support from as many DIP lenders as practicable and has received signature pages from more than the Required Lenders needed to implement the agreement. Delphi Will Go Through Half Its Cash By March Delphi, in a Nov. 28 filing with the Securities and Exchange Commission said that it would provide supplemental financial in connection with their solicitation of lenders' consents to the Accommodation Agreement. This information includes near-term forecast updates to cash flows and liquidity levels through March 31, 2009: (in millions) 2008 | 2009 -------------------------------------------|------------------ Actual | Projected Cash June Sep Oct | Nov Dec | Jan Feb Mar -------------------------------------------------------------- U.S. Cash $148 $1,136 $793 $417 $198 | $34 $28 $26 | Non-U.S. | Cash 985 788 843 862 1,176 | 935 857 715 -------------------------------------------------------------- Consoli- 1,133 1,904 1,636 1,279 1,374 | 969 885 741 ted Cash | -------------------------------------------------------------- Availa- bility DIP 613 138 46 - - | - - - GM Support 300 - - 300 300 | 300 215 110 -------------------------------------------------------------- Total $ 913 $138 $46 $300 $300 | $300 $215 $110 Avai- lability | -------------------------------------------------------------- Cash and | Availa- | bility $2,046 $2,042 $1,682 $1,579 $1,674 $1,269 $1,100 $851 ============================================================== DIP | Revolver | Balance 311 465 511 397 397| 370 370 370 GM Agreement | Balance - - - - - _ 85 190 | Memo: Borrowing Base Cash Collateral | - - - - 200| 200 155 150 According to Bloomberg News, the disclosure means that Delphi will burn through $633 million in cash from December through March, or almost half its reserves. The Debtors' $4,350,000,000 DIP facility consists of: Tranche Facility ------- -------- A US$1,100,000,000 first priority revolving Credit facility B US$500,000,000 first priority term loan C Approximately US$2,750,000,000 second priority term loan. Through the Accommodation Agreement, certain Tranche A Lenders and Tranche B Lenders would agree to, among other things, allow the Debtors to continue using the proceeds of the DIP Facility notwithstanding, among other things, the DIP Facility's maturity date of December 31, 2008. Delphi is facing opposition from some of its lenders, who, according to CNNmoney.com, say the other lenders who agreed to the extension arranged a "sweetheart deal" for themselves. The third lender group who said the arrangement would "trample" their rights by giving additional liens to the other lenders that have consented to the change, Dow Jones reports. The lenders that are opposing the loan changes said their collateral is at risk as Delphi burns through cash. The opposing lenders also said a subset of lenders, led by JPMorgan, would see $200 million in unsecured claims elevated to first-priority lien status. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News, Issue No. 151; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Tranche C Lenders, et al., Balk at DIP Loan Extension ------------------------------------------------------------------ Greywolf Capital Management, LP, Tranche C Lender under Delphi Corp.'s DIP Credit Agreement, opposes an extension of the loan's maturity date, contending that Delphi sought an extension of the maturity date, without adhering to the requirements of the DIP Facility. As reported in today's Troubled Company Reporter, according to a Bloomberg News report, Delphi won approval from the U.S. Bankruptcy Court for the Southern District of New York to extend until June 30, 2009, the maturity date of its US$4.35 billion DIP financing. Ronald R. Sussman, Esq. at Cooley Godward Kronish LLP, in New York, notes that Delphi, expecting that DIP Lenders' unanimous consent for the extension of the maturity date of the DIP Credit Agreement is not possible, seeks to force Greywolf into indentured servitude by holding by hostage for an additional six months, its funds in excess of US$100,000,000, Mr. Sussman says. This, he adds is in direct contravention of the terms of the DIP Credit Agreement. To note, the extension of the maturity date of the DIP Credit Agreement is prohibited by the plain terms of the DIP Credit Agreement. The extension of the maturity date of the DIP Credit Agreement can only be obtained through a unanimous consent of all the Lenders, Mr. Sussman contends. M.D. Sasse Re/Enterprise Portfolio Company L.P., another Tranche C Lender, shares Greywolf's contentions regarding the need for the Debtors to get a unanimous consent of the Lenders as a requirement to obtain approval to supplement the DIP Credit Agreement. Other Tranche C Lenders also asked the Court to deny the terms of the proposed extension, citing that Delphi is seeking to elevate US$200,000,000 of pre-existing unsecured hedging obligations to first priority liens status, thereby diluting the liens held by all first-lien lenders and priming holders of Tranche C Loans, with all these being done to the Lenders at a time when macroeconomic conditions and the automotive industry in particular, are their weakest point in decades. Furthermore, the Tranche C Collective asks the Court, pursuant to Sections 361(e) and 363(e) of the Bankruptcy Code in exchange for the Debtors' continued use of the collateral in these Chapter 11 cases. The Tranche C collective is composed of these Lenders: -- Sberdeen Loan Funding Ltd. -- Anchorage Capital Master Offshore, Ltd. -- Anchorage Crossover Credit Offshore Master Fund, Ltd. -- Carlson Capital, L.P -- Geer Mountain Financing Ltd. -- Highland Credit Opportunities CDO Ltd. -- Hillmark Funding Ltd. -- Luxor Capital, LLC -- Mariner LDC -- Mariner Tricadia Credit Strategies Master Fund Ltd. -- Monarch Alternative Capital LP -- OHP CBNA Funding LLC -- Pentwater Credit Partners, Ltd. -- RiverSource Investments, LLC -- Silver Point Capital Fund, L.P. -- Spectrum Investment Partners, L.P. -- Stoney Lane Funding Ltd. -- Tricadia Distressed and Special Situations Master Fund Ltd. -- West Gate Horizon Advisors -- WhiteHorse I, Ltd. -- Whitehorse II, Ltd. -- Whitehorse III, Ltd. -- Whitehorse IV, Ltd. Susheel Kirpalani, Esq., at Quinn Emmanuel Urquhart Oliver & Hedges, LLP, in New York, told the Court that the relief requested by the Tranche C Collective is narrowly tailored to the harms to be avoided, and is warranted when: (i) traditional means of adequate protection are not available based on the unique facts of these cases; and (ii) the Accommodation Agreement ensures the Collateral's trend toward decline will continue at alarming rate. Moreover, Mr. Kirpalani asserts, in operating the Debtors' businesses post-maturity, the Court should take measures, pursuant to Section 1107(a) of the Bankruptcy Code, to establish a closer watch over the estates and ensure that the rights of all parties in interest are continuously monitored consistent with the Bankruptcy Code, including the priority provisions therein and pursuant to the Court's prior DIP financing orders. Select Tranche A and B Lenders also objected to the Accommodation Agreement. Calyon New York Branch, a Tranche A Lender under the DIP Credit Agreement, asked the Court to deny the Debtors' motion or in the alternative, direct the Debtors and their Agents to count votes for or against the proposed Accommodation Agreement in accordance with the voting rules set out in the DIP Credit Agreement. Calyon contends that there are provisions of the DIP Credit Agreement that prohibit modifications of the type sought in the Proposed Accommodation Agreement which the Debtors did not discuss in their motion. In an addition, an ad hoc group of Tranche A and B DIP Lenders asked the Court to direct the Debtors to provide adequate protection for the use of their collateral. Represented by David Neier, Esq., at Winston & Strawn LLP, in New York, the Ad Hoc Group clarifies that it would support an accommodation agreement in aid of the Debtors' reorganization. However, the Ad Hoc Group wants the Accommodation Agreement, in its current form, denied because, among other things, the Debtors seek to provide liens for US$200,000,000 of presently unsecured Hedging Obligations of the Debtors, and the liens will be pari passu with the DIP liens granted to the Ad Hoc Group, even though the Debtors will be in default of the DIP Credit Agreement on the maturity date, December 31, 2008. Other key parties, like the Official Committee of Equity Security Holders and the Official Committee of Unsecured Creditors, expressed support on the Accommodation Agreement. The Equity Committee said some of the lenders have been overreaching in certain respects, however it believes that the Debtors have sought the best and most beneficial arrangement they deem possible while attempting to resolve the issues raised by the lenders under the DIP Facility. The Creditors Committee says that while it does not object to other concessions the Debtors propose to make to the DIP lenders in the Accommodation Agreement, including to the Tranche C lenders, the Committee submits that granting voting rights where none currently exist makes little sense and increases the risk that actions of the Tranche C lenders may negatively affect the Debtors' restructuring efforts. The Debtors, in response to the objections, say that notwithstanding the various objections filed in opposition to the Accommodation Motion, nearly all of the Objecting Lenders actually agree that an accommodation is the preferred outcome. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News, Issue No. 151; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) FORD MOTOR: To Cut CEO's Pay Package & Focus on Making Small Cars ----------------------------------------------------------------- Ford Motor Co. will present before the congress its business plan, which includes a reduction in CEO Alan Mulally's compensation package, Mike Spector, Mathew Dolan, and Greg Hitt at The Wall Street Journal report, citing a person familiar with the matter. According to WSJ, Ford Motor and General Motors Corp. directors met separately on Monday to vote on their viability plans to be presented to the Congress on Tuesday, to try to win support for US$25 billion in low-cost loans from the federal government. Chrysler LLC top executives, WSJ relates, were finalizing their own plan to show that it can survive and return to profitability with government aid, after its private-equity owner Cerberus Capital Management LP reviewed the plan on Monday. Citing a source, WSJ states that it isn't yet clear how Mr. Mulally's pay package will be reduced, but Ford Motor is considering cutting off Mr. Mulally's salary until the firm becomes profitable again, or paying him through stock options. According to the report, Mr. Mulally has earned almost US$50 million in total compensation since leading Ford Motor in 2006. WSJ reports that executive compensation became an issue when the Ford Motor, GM, and Chrysler asked the Congress for financial help in November 2008. Mr. Mulally, says WSJ, had been unwilling to accept a US$1 yearly salary when he was asked during the first meeting of the Congress, and people familiar with the matter said that Ford Motor Executive Chairperson William Clay Ford and some other members of the company's board were unnerved by Mr. Mulally. Ford Motor to Focus on Small Cars Citing a person familiar with the matter, WSJ relates that Ford Motor will also mention in its business plan that it will shift to making small fuel-efficient cars and break from the past strategy of focusing mainly on large pick up trucks and sport-utility vehicles. According to the report, Ford Motor's plan would likely underscore its new fuel-efficient gasoline turbocharged direct- injection engines and bringing its high-mileage cars from its European operations to the U.S. Conway MacKenzie Says More Cuts Must be Implemented GM, Ford Motor, and Chrysler must implement more cuts, WSJ reports, citing restructuring firm Conway MacKenzie & Dunleavy senior managing director Van Conway. "I think you need to demonstrate sincerely that you are doing the very painful cuts -- white collar, blue collar, plant closings. They need to really look like they're suffering on the expense line so people believe they can make it," the report quoted Mr. Conway as saying. According to WSJ, a source said that Ford Motor and GM would be willing to seek further cost-cuts and concessions from the United Auto Workers union. The report says that once GM reaches an agreement with the United Auto Workers union on any wage or benefit concessions for a rescue of the company, Chrysler, Ford Motor will also insist on a similar arrangement. GM, according to the report, owes the health care trust for retiree union workers some US$7.5 billion by 2010, which many suspect the company can't afford. Citing a source, WSJ says that UAW President Ron Gettelfinger is open to eliminating the jobs bank, which pays employees most of their wages even when they no longer work in plants, but Mr. Gettelfinger wants to see management sacrifices in return. The sacrifices, WSJ relates, would include limits on executive compensation and a retraining program that will help laid-off workers get high-tech jobs in areas like battery development for electric vehicles. WSJ relates that sources said that GM will plan more cuts to North American production capacity, an initiative to offer debt-holders equity to tidy its balance sheet, and cuts to executive pay, while aspects of the plan include goals to gain more labor concessions, and executive pay cuts. Citing a source, the report states that GM would also include in its plan cutting brands and details on new fuel-efficient vehicles and how the firm will meet new stringent federal mileage rules. The report says that GM hopes to start selling electric plug-in car Chevrolet Volt in 2010. Cerberus Capital is also interested in combining Chrysler with another firm, WSJ states. Cerberus Capital had discussed selling Chrysler to GM before the request for government aid, according to the report. Jeff Bennett at WSJ reports that Ford Motor is again considering selling its Swedish luxury vehicle maker Volvo Cars, saying on Monday that it will re-evaluate strategic options for the unit as part of a broader effort to strengthen Ford Motor's balance sheet. Ford Motor, according to WSJ, acquired Volvo Cars from Swedish truck maker AB Volvo for more than US$6.5 billion in 1999. The review could take several months, during which time Volvo Cars will continue implementing a restructuring, which includes laying off a quarter of its workforce, states WSJ. Mr. Mulally had affirmed in November this year his decision in 2007 to keep Volvo Cars after a review of the advantages of selling the unit that year, according to the report. Mr. Mulally said last month that he was still committed to restoring Volvo Cars' financial health, the report states. According to WSJ, CSM Worldwide analyst Michael Robinet doubts that Ford Motor will be able to quickly find a suitor. The report quoted Mr. Robinet as saying, "Anyone who purchases Volvo would have to have very close ties to Ford because virtually every Volvo is using a Ford platform. It will be difficult because it's not like cutting a piece of pie that's already perforated and just cracking it off. They are very integrated and it could take years." AB Volvo said on Monday that it wasn't interested in purchasing back Volvo Cars from Ford Motor, WSJ reports. WSJ relates that GM, Ford Motor, and Chrysler were also devising alternative travel plans after the Congress criticized their CEOs for using expensive corporate jets to make their way to Capitol Hill. Ford Motor said on Monday that Mr. Mulally will drive by car to Washington this time, while Chrysler said that its CEO Robert Louis Nardelli has ruled out flying by private jet, according to the report. WSJ states that if the Congress approves the requests of GM, Ford Motor, and Chrysler for government financial assistance, the lawmakers would be called back to Washington next week. Jeff Green and John Lippert at Bloomberg News report that GM, Ford Motor, and Chrysler union leaders will hold an emergency meeting on Dec. 3 at the Detroit Marriott Hotel. Citing a person familiar with the matter, the report says that participants of the meeting will be asked to reopen a 2007 labor agreement to consider concessions. Sources said that GM also wants to change how it pays for a union retiree health care fund as part of a broader cost cutting plan designed to win government aid, Bloomberg states. 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. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Moody's Investors Service lowered the debt ratings of Ford Motor Company, Corporate Family and Probability of Default Ratings to Caa1 from B3. The company's Speculative Grade Liquidity rating remains at SGL-3 and the rating outlook is negative. In a related action Moody's also lowered the long-term rating of Ford Motor Credit Company to B3 from B2. The outlook for Ford Credit is negative. As reported in the Troubled Company Reporter on Oct. 10, 2008, Fitch Ratings downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company by one notch to 'CCC' from 'B-'. GKL JAC: Fitch Cuts 5 Classes of Bonds Due to Replacement Delays ---------------------------------------------------------------- Fitch Ratings has downgraded five classes of G.K.L-JAC Four Funding's bonds. The rating actions reflect the current status and foreseeable outcome of proceedings in the replacement of counterparties to the transaction, following the Lehman Brothers Group bankruptcy in September 2008; rather than as a result of the performance of the transaction and its underlying assets. In this transaction, Lehman Brothers Special Financing Inc., guaranteed by Lehman Brothers Holdings Inc., acts as the interest swap counterparty, and Lehman Brothers Japan Inc acts as the advance provider. To date, the replacement of both the interest rate swap counterparty and advance provider have not been completed. However, the transaction parties are negotiating with potential counterparties for both roles, and procedures for the replacement of both roles are in progress. As indicated in the press release the rating actions are a result of the agency's expectation that the advancing agent will be replaced. The agency's analysis focused on whether the existence of the advance facility is essential in supporting the current ratings under corresponding rating scenarios, taking into account the characteristics of the underlying loan assets and collateral properties. In the higher rating level scenarios, there is one loan for which the existence of the advance provider is viewed as essential in supporting the ratings. This is despite there being less concern about the ultimate recovery of the loan principal. Fitch views that there is a high possibility that the trustee will enter into a new advance agreement, based on recent actions by the transaction parties, and the fact that the replacement procedures are underway. Therefore, the agency has taken the current candidate's credit-based ability to perform as the alternative advance provider, into account in its analysis. As for the interest rate swap counterparty, negotiations with prospective counterparties are ongoing and the agency notes that the possibility of the trustee entering into a new swap agreement is high. However, as a result of today's rating actions, the likelihood of further downgrades is small, even if no replacement swap is entered into. Fitch will continue to monitor the progress of counterparty replacement activities made by the transaction parties. The Rating Watch Negative will be resolved when the replacement of the advance provider is completed, although the possibility of further downgrades exist for certain classes of bonds remaining on RWN, if the current candidate does not assume the role. The full list of rating actions: -- JPY18.84 billion* Class A2 Bonds downgraded to 'BBB-' (BBB minus) from 'AAA'; remain on RWN; -- JPY4.28 billion* Class B2 Bonds downgraded to 'BBB-' (BBB minus) from 'AA'; remain on RWN; -- JPY4.0 billion* Class C2 Bonds downgraded to 'BBB-' (BBB minus) from 'A'; remain on RWN; -- JPY1.1 billion* Class D2 Bonds affirmed at 'BBB'; removed from RWN; Outlook Stable; -- JPY1.0 billion* Class D3A Bonds downgraded to 'BBB-' (BBB minus) from 'BBB'; remain on RWN; -- JPY2.3 billion* Class D3B Bonds downgraded to 'BBB-' (BBB minus) from 'BBB'; remain on RWN; -- JPY0.46 billion* Class E2 Bonds affirmed at 'BBB-' (BBB minus); Outlook Stable; -- JPY1.2 billion* Class E3 Bonds 'BBB-' (BBB minus); remain on RWN; -- JPY0.29 billion* Class F2 Bonds affirmed at 'BB+'; removed from RWN; Outlook Stable; -- JPY1.1 billion* Class F3 Bonds 'BB+'; remain on RWN; -- JPY0.29 billon* Class G2 Bonds affirmed at 'BB'; removed from RWN; Outlook Stable; -- JPY0.4 billion* Class G3 Bonds affirmed at 'BB'; removed from RWN; Outlook Stable; and -- Interest (dividend)-only Classes X1** and X2** TBIs affirmed at 'AAA'; Outlook Stable. * As of November 28, 2008 ** X-1 TBIs: interest (dividend)-only class X-2 TBIs: in addition to interest (dividend), trust principal payments on the fractional principal amount on the underlying loans and cash reserves The ratings address the timely payment of interest and ultimate repayment of principal by legal final maturity for all bond classes. The ratings on the interest (dividend)-only Class X1 and X2 TBIs address only the likelihood of receiving interest payments while principal on the related TBIs remains outstanding, as per the L-JAC Four trust agreement. Rating Outlooks have been published for all newly issued Asia Pacific Structured Finance tranches since June 2008, and concurrently with rating actions for tranches issued prior to June 2008. Unlike a Rating Watch which notifies investors that there is a reasonable probability of a rating change in the short term as a result of a specific event, rating outlooks indicate the likely direction of any rating change over a one- to two-year period. JAPAN GENERAL: Cancels Plan to Hire 53 Staff -------------------------------------------- Japan General Estate Co. has withdrawn all 53 employment offers it gave to university students, The Mainichi Daily News reports. According to Bloomberg News, Japan General fell 14 percent on Monday, December 1, after the job offer cancellation. "With the outlook still so uncertain, we must focus on improving our balance sheet quickly," Bloomberg News cites Seiji Matsumoto, a spokesman at Japan General Estate as saying. The Mainichi Daily says the Tokyo Labor Bureau and the Tokyo Tobu branch of the National Union of General Workers intend to press the company for an explanation. It is extremely unusual for a company to withdraw such a large number of job offers at one time, The Mainichi Daily notes. Japan General Estate Co., Ltd. is a Japan-based company engaged in the real estate business in the metropolitan area. The company has five business segments. The Real Estate Sales segment sells condominiums directly to consumers and on consignment through realtors in the metropolitan area. The Real Estate Leasing segment is engaged in the leasing of real estate in metropolitan and Kansai areas. The Real Estate Management segment is engaged in the management of real estate. The Advertising segment is engaged in the planning and production of advertisement, as well as the construction of interior works. The Others segment is engaged in the facility management, hotel operation, food service, manpower dispatching business, the operation of hot spring facilities and the sale of cosmetics. The company has nine subsidiaries and one associated company. NOMURA HOLDINGS: Eyes JPY500 Bil. Pretax Profit in March 2011 ------------------------------------------------------------- Bloomberg News reports Nomura Holdings Inc. repeated a target of reaching a JPY500 billion (US$5.3 billion) pretax profit for the year that ends in March 2011. The report says Chief Executive Officer Kenichi Watanabe told investors rising profit from investment banking outside Japan will help Nomura reach the goal. The report relates Mr. Watanabe's remarks came as Goldman Sachs Group Inc. cut a forecast for Nomura's fiscal 2011 pretax profit by 20 percent to JPY250 billion. Goldman said Nomura's acquisition of Lehman Brothers Holdings Inc.'s Europe, Middle East and Asia units may force Nomura to raise more capital. Bloomberg News recalls the company said in October it may spend US$2 billion to integrate about 8,000 employees it acquired when it took over Lehman's operations outside the Americas. "We believe further funding is likely and see risk of shareholder value dilution. . . ," Bloomberg News quoted Goldman analysts Takehito Yamanaka and Tomoko Imoto as saying. The analysts reiterated their "sell" rating on Nomura and cut their share-price target to JPY670 yen from JPY1,180. "Recovery in Nomura's share price is likely to be delayed," they said. Losses According to Bloomberg News, Nomura reported three straight quarterly losses as global markets declined and flagged US$2 billion in costs stemming from the purchase of parts of Lehman Brothers. The company had a pretax loss of JPY64.6 billion for the year ended March 31 while global investment banking profit was JPY22.8 billion. Nomura had about JPY430.9 billion of cash as of Sept. 30. Bloomberg News relates the brokerage posted a wider-than-expected JPY72.9 billion second-quarter loss, putting it on course for a record full-year deficit. The firm's first-half shortfall of JPY149.5 billion was more than double its record JPY67.8 billion annual loss last year, prompting Standard & Poor's and Moody's Investors Service to say they may cut the firm's credit ratings, Bloomberg News adds. Dai-ichi Deal Nomura plans to sell JPY110 billion (US$1.2 billion) of bonds, mostly to Dai-ichi Mutual Life Insurance Co., to boost capital, Bloomberg News reports. According to the report, Nomura will sell JPY100 billion of subordinated convertible bonds to Dai-ichi and will sell JPY10 billion of the bonds to Shinkin Central Bank. Nomura also may sell as much as JPY300 billion of corporate bonds by Dec. 8, 2010, the report says. About Nomura Holdings Headquartered in Tokyo, Japan, Nomura Holdings Inc. (NYSE:NMR) -- http://www.nomura.com/-- is a global securities and investment banking firm. Nomura is a holding company. The services it provides include trading, underwriting, and offering securities, asset management services, and others. As of March 31, 2008, it operated offices in about 30 countries and regions, including Japan, the United States, the United Kingdom, Singapore and Hong Kong through its subsidiaries. The Company's customers include individuals, corporations, financial institutions, governments and governmental agencies. Nomura operates in five business divisions: domestic retail, global markets, global investment banking, global merchant banking and asset management. In February, 2007, Nomura acquired Instinet Incorporated. Effective October 1, 2008, Nomura Holdings Inc. acquired Lehman Brothers Holdings Inc.'s European equities and investment-banking business, and decided not to take on the fixed-income unit. * JAPAN: BOJ Sets Measures to Ease Tight Corporate Credit --------------------------------------------------------- Xinhua News Agency reported that the Bank of Japan (BOJ) on Tuesday rolled out a series of emergency measures to ease tight corporate credit as the ongoing global financial turmoil makes it difficult for companies to raise operating capital. According to Xinhua, BOJ's eight-member policy board decided to start accepting BBB-rated corporate debt as eligible collateral on Dec. 9, easing the conditions for eligible collateral currently set at A-rated or higher. The central bank, Xinhua relates, will provide an unlimited amount of funds at an interest rate of 0.3 percent against the value of corporate debt pledged as eligible collateral. The policy board also decided to hold the key short-term interest rate unchanged at 0.3 percent. ==================== N E W Z E A L A N D ==================== ACP LTD ET AL: Creditors' Proofs of Debt Due on December 9 ----------------------------------------------------------- The creditors of ACP Ltd. and Partitions Limited are required to file their proofs of debt by December 9, 2008, to be included in the company's dividend distribution. The company's liquidators are: Gregory John Sherriff Barry Phillip Jordan c/o Logan Nicholls Deloitte Deloitte House, Levels 11-16 10 Brandon Street Wellington 6011 Telephone:(04) 472 1677 Facsimile:(04) 472 8023 ATOMIX NEW ZEALAND: Appoints Shephard and Dunphy as Liquidators --------------------------------------------------------------- The shareholders of Atomix New Zealand Ltd. appointed Iain Bruce Shephard and Christine Margaret Dunphy as the company's liquidators on November 4, 2008. The Liquidators can be reached at: Iain Bruce Shephard Christine Margaret Dunphy Shephard Dunphy Limited Zephyr House, Level 2 82 Willis Street, Wellington Telephone:(04) 473 6747 Facsimile:(04) 473 6748 DOMINION FINANCE: Investors Approve Unit's Debt Moratorium ---------------------------------------------------------- Dominion Finance Holdings Ltd said that the debt moratorium for its subsidiary North South Finance Ltd has been approved by the stockholders yesterday, December 2. Fiona Robertson at The National Business Review reports that the latest financial figures available in moratorium documents showed that North South's main assets as at September 30 represented around 86% of investors' capital. Its loan book, the report says, had been hit by around NZ$30 million provisions for losses and stood at NZ$76.4 million. According to The National Business Review, the company's trustee has raised questions over alleged related party lending, but says this will still be investigated under a moratorium. The report notes North South owes NZ$102.3 million capital to investors, including NZ$33.3 million to its bankers. Interest owing of NZ$4.4 million is unlikely to be returned, the report says. About Dominion Finance Based in Auckland, New Zealand, Dominion Finance Holdings Limited (DFH:NZX) -- http://www.dominionfinance.co.nz/--engages in the provision of financial services through the raising of debenture stock. The company operates through its wholly owned subsidiaries Dominion Finance Group Limited and North South Finance Limited, and investment vehicle Dominion Investment Fund Limited. Both Dominion Finance Group Limited and North South Finance Limited accept debenture stock investments and apply them (in conjunction with its own funds) towards the provision of certain loans and other financial accommodation. * * * As reported in the Troubled Company Reporter-Asia Pacific on Sept. 11, 2008, the company's trustee Perpetual Trust Limited appointed Rodney Gane Pardington and Barry Phillip Jordan, both Chartered Accountants of Deloitte, as receivers and managers of Dominion Finance Group. According to The National Business Review: "Dominion went into voluntary administration after it was fined NZ$65,000 by NZX Discipline for filing its annual report late. At that time, directors said the holding company had little cash to its own name. Subsidiary Dominion Finance Group is in receivership while directors are still pursuing a moratorium for North South Finance. Dominion Finance Group owes 6,055 debenture holders NZ$224 million." EASTSIDE TRUSTEE: Court to Hear Wind-Up Petition on December 19 --------------------------------------------------------------- A petition to have Eastside Trustee Ltd.'s operations wound up will be hears before the High Court of Auckland on December 19, 2008, at 11:45 a.m. Allied Nationwide Finance Limited filed the petition against the company on October 23, 2008. The Petitioner's solicitor is: Edward Michael Somers Cox Gibson Sheat, Lawyers Gibson Sheat Centre, Level 3 1 Margaret Street Lower Hutt GARLANDS DESIGN: Liquidates Business After 52 Years --------------------------------------------------- Fiona Robertson at The National Business Review reports that Garlands Design has closed its doors and gone into liquidation. The company, Business Review says, opened 52 years ago in the Strand Arcade off Queen Street, before moving to Remuera quarters in the early 1970s. JOURDAN DEVELOPMENTS: Court Hears Wind-Up Petition -------------------------------------------------- On November 24, 2008, the High Court at Wellington heard a petition to have Jourdan Developments Ltd.'s operations wound up. Acrow Limited filed the petition against the company on Oct. 7, 2008. Acrow Limited's solicitor is: B. R. Young Golden Bay Collections Limited PO Box 207, Takaka 7172 Telephone:(03) 525 7100 Facsimile:(03) 525 9040 e-mail: gb.collections@xtra.co.nz LEAH EVANS: Court to Hear Wind-Up Petition on January 28 -------------------------------------------------------- A petition to have Leah Evans Ltd.'s operations wound up will he heard before the High Court at Rotorua on January 28, 2008, at 10:45 a.m. L.E.A.D Training Trust Limited filed the petition against the company on October 21, 2008. The Petitioner's solicitor is: Charles Fletcher Fletcher Law Barristers & Solicitors 20 Rostrevor Street PO Box 29, Hamilton LITHO SERVICES: Commences Liquidation Proceedings ------------------------------------------------- Litho Services Property Ltd. commenced liquidation proceedings on October 28, 2008. Only creditors who were able to file their proofs of debt by Nov. 24, 2008, will be included in the company's dividend distribution. The company's liquidator is: Bryan G. Pocock 44 Victoria Street, Level 7 (PO Box 10788), Wellington Telephone:(04) 472 3560 Facsimile:(04) 472 3564 MAINLAND SALES: Court Hears Wind-Up Petition -------------------------------------------- On December 1, 2008, the High Court at Christchurch heard a petition to have Mainland Sales and Marketing Ltd.'s operations wound up. The Commissioner of Inland Revenue filed the petition against the company on Oct. 14, 2008. The CIR's solicitor is: Julie Newton Inland Revenue Department Legal and Technical Services 1st Floor Reception 224 Cashel Street PO Box 1782, Christchurch 8140 Telephone:(03) 968 0807 Facsimile:(03) 977 9853 PILE SERVICES: Court to Hear Wind-Up Petition on December 8 ----------------------------------------------------------- A petition to have Pile Services Ltd.'s operations wound up will be heard before the High Court of Palmerston on December 8, 2008, at 10:00 a.m. Accident Compensation Corporation filed the petition against the company on October 17, 2008. Accident Compensation's solicitor is: Dianne S. Lester Maude & Miller McDonald's Building, 2nd Floor Cobham Court PO Box 5055, Porirua City RELSON LTD: Court Hears Wind-Up Petition ---------------------------------------- On November 24, 2008, the High Court at Wellington heard a petition to have Jourdan Developments Ltd.'s operations wound up. Acrow Limited filed the petition against the company on Oct. 7, 2008. Acrow Limited's solicitor is: Brent O'Callahan Carter & Partners Barristers & Solicitors West Plaza Tower, 9th Floor 1-3 Albert Street, Auckland STRATEGIC FINANCE: Trustee and Banker Agree on Proposed Moratorium ------------------------------------------------------------------ Strategic Finance Limited said it has reached agreement with Perpetual Trust Limited and BOS International (Australia) Limited (BOSIAL), its financier on the terms of the moratorium proposal to be voted on by stockholders, deposit holders and subordinated noteholders in Wellington on December 22, 2008. Based on documentation requirements, this was the earliest possible date available open to Strategic Finance to ensure the meetings were held this year. Under the moratorium plan, Strategic Finance said it will, subject to the availability of funds as the assets of Strategic Finance are realized, make quarterly repayments of principal and interest through to December 2013, to its stockholders, deposit holders and subordinated note holders, in accordance with existing priority arrangements, as the assets of Strategic Finance are realized. The directors of Strategic Finance believe that, in the context of the current circumstances, the moratorium is the best way forward and that it will result in higher repayments to all securityholders than would be available in a receivership. The aim of Strategic Finance is to repay all principal and pay accrued interest to stockholders, deposit holders and subordinated noteholders over the course of the moratorium period. However, the ultimate outcome of the moratorium and the amount and timing of payments to securityholders will depend on the successful realization of Strategic Finance's assets. Under the moratorium proposal, interest on investments will be re- set at August 7, 2008, to 8.0% across the board for all securityholders, including BOSIAL for its main bank facility (interest that accrues on the prior ranking BOSIAL facilities of NZ$25 million will continue to accrue at the existing ordinary rate). It is anticipated that PricewaterhouseCoopers will be appointed as the monitoring accountant during the moratorium and will monitor Strategic Finance's compliance with the terms of the moratorium. The moratorium proposal allows Strategic Finance the opportunity to work with borrowers, realizing assets on an orderly basis to ensure value is preserved and investor money is repaid if and when funds are available. The moratorium is not subject to the approval of the perpetual preference shareholders. No changes are proposed to the terms of issue the perpetual preference shares under the moratorium. However, if the moratorium proposal is approved then it is intended that a dividend cancellation notice will be issued cancelling all future dividends on the perpetual preference shares until the end of the moratorium and Strategic Finance has been able to fully repay the prior ranking stockholders, deposit holders and subordinated noteholders. The moratorium notice of meetings and explanatory memorandum (including an independent report on the moratorium proposal from PricewaterhouseCoopers) will be posted at the end of this week to all investors. As well a copy of a short form prospectus, containing information on Strategic Finance's financial position as at June 30, 2008, will be sent separately to all investors prior to the meetings. About Strategic Finance Headquartered in Wellington, New Zealand, Strategic Finance Limited (NZE:SFLHA) -- http://www.strategicfinance.co.nz/-- operates as a specialist finance company offering financial services, primarily to the property sector. It has four main business activities: Lending within the property sector; Non- property lending and investments; Corporate advisory and management services, and Underwriting services. Lending within the property sector is its primary activity with a focus on providing finance for property development and property investment activities. It was offering motor vehicle lending under non-property lending and investments. The Company, and in some circumstances through its wholly owned subsidiary Strategic Advisory Limited, provides specialist advisory and management services to the property and corporate sectors for which it receives fee income. It may provide underwriting services. These services include the underwriting of property related share or debt securities offered by a promoter through a registered prospectus. It receives fees for such services. Strategic Finance Limited's parent company, Strategic Investment Group, is wholly owned by Australian-based finance company Allco HIT Limited. * * * As reported in the Troubled Company Reporter-Asia Pacific on August 8, 2008, Strategic Finance Limited suspended redemptions of its secured debenture stock and subordinated notes. The company also ceased accepting subscriptions for debenture stock and subordinated notes under its current prospectus and investment statement. The company owed NZ$325 million to 15,000 investors, according to various reports. The TCR-AP reported on October 17, 2008, that Strategic Finance intends to present to Perpetual Trust Limited of New Zealand, the trustee under SFL's Debenture Trust Deed, a new capital restructure proposal for SFL, which will endeavor to set out the best course of action for SFL and its debenture investors, and all stakeholders after a proposal by a management-led consortium to buy Strategic Finance Limited's parent, Strategic Investment Group Limited, from Allco HIT, fell through. TE ROOPU: Court Hears Wind-Up Petition ---------------------------------------- On December 1, 2008, the High Court at Whangarei heard a petition to have Te Roopu Whakapiringa (Coming Together) Inc.'s operations wound up. The Commissioner of Inland Revenue filed the petition against the company on Oct. 20, 2008. The CIR's solicitor is: M. B. Smith Marsden Woods Inskip & Smith 122 Bank Street PO Box 146, Whangarei THE ULTIMATE: Appoints Shephard and Dunphy as Liquidators --------------------------------------------------------- On November 4, 2008, Iain Bruce Shephard and Christine Margaret Dunphy were appointed liquidators of The Ultimate Recruitment Company Ltd. The Liquidators can be reached at: Iain Bruce Shephard Christine Margaret Dunphy Shephard Dunphy Limited Zephyr House, Level 2 82 Willis Street, Wellington Telephone:(04) 473 6747 Facsimile:(04) 473 6748 * NEW ZEALAND: Housing Consent in October Lowest Since 1992 ----------------------------------------------------------- Building consent statistics show there were 1,173 new housing units authorized in October 2008, Statistics New Zealand said. This is the lowest monthly total since January 1992. In October 2008, the seasonally adjusted number of authorized new housing units excluding apartments fell 7.1 percent compared with September 2008. There were 50 apartment units authorized in October 2008. This is the lowest monthly total since April 2000, apart from March 2008 when there were also 50 apartment units authorized. For the year ended October 2008, the value of consents issued for residential buildings fell NZ$1,192 million (15 percent), while the value for non-residential buildings rose NZ$301 million (7.2 percent), compared with the year ended October 2007. ================= S I N G A P O R E ================= H & Q ASIA: Requires Creditors to File Claims by December 29 ------------------------------------------------------------ The creditors of H & Q Asia Pacific Venture Management Pte Ltd are required to file their proofs of debt by December 29, 2008, to be included in the company's dividend distribution. The company's liquidators are: Chee Yoh Chuang Lim Lee Meng 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 HOCK BEE: Wind-Up Petition Hearing Set for December 12 ------------------------------------------------------ A petition to have Hock Bee Food Corporation Pte Ltd's operations wound up will be heard before the High Court of Singapore on Dec. 12, 2008, at 10:00 a.m. The Bank of East Asia Limited filed the petition against the company on November 11, 2008. The Petitioner's solicitors are: Messrs Ho & Wee No. 90 Cecil Street #17-02 RHB Bank Building Singapore 069531 HQO DESIGN: Court to Hear Wind-Up Petition on December 12 --------------------------------------------------------- A petition to have HQO Design Pte. Ltd.'s operations wound up will be heard before the High Court of Singapore on Dec. 12, 2008, at 10:00 a.m. Contrac-Image Trading Pte Ltd filed the petition against the company on November 18, 2008. Contrac-Image's solicitors are: M/s Tan Jee Ming & Partners No. 58 Tras Street #02-01 Singapore 078997 SUNRISE F & B: Creditors' Proofs of Debt Due on December 28 ----------------------------------------------------------- Sunrise F & B Pte Ltd, which is in liquidation, requires creditors to file their proofs of debt by Dec. 28, 2008, to be included in the company's dividend distribution. The company's liquidator is: Tam Chee Chong 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 SUPERIOR MODULAR: Creditors' Proofs of Debt Due on January 9 ------------------------------------------------------------ Superior Modular Products Asia Pte Ltd, which is in liquidation, requires creditors to file their proofs of debt by Jan. 9, 2009, to be included in the company's dividend distribution. The company's liquidator is: Heng Lee Seng 15 Hoe Chiang Road #12-02 Tower Fifteen Singapore 089316 ================ S R I L A N K A ================ SRI LANKA TELECOM: Fitch Maintains 'B+' Issuer Default Rating ------------------------------------------------------------- Fitch Ratings has affirmed Sri Lanka Telecom PLC's Long-term foreign currency Issuer Default Rating at 'B+', which is constrained by the Democratic Socialist Republic of Sri Lanka's LTFC IDR. At the same time, the agency has affirmed SLT's Long- term local currency IDR at 'BB-' (BB minus), as well as its National Long-term rating at 'AAA(lka)'. The Outlook is Stable. The rating on SLT's US$100 million senior-unsecured notes due in 2009 has been affirmed at 'B+' with a recovery rating of 'RR4'. SLT's ratings reflect its entrenched position in the country's telecommunications market, its robust ability to generate cash flow from operations and its strong financial profile. SLT is a fully integrated operator with a monopoly in wire-line services. The company has defended its market share in the fixed-wireless space (June 2008: 30%) and has improved its market share in the mobile segment (June 2008: 20%; FY06: 16%). The latter is expected to account for a significant share of SLT's revenue growth over the short- to medium-term and is now positively contributing to SLT's operating cash generation. The company also enjoys a dominant share of the international long-distance and IP and data-related services. In the nine moths to September 2008, SLT reported revenues of LKR35 billion (+9.8% over the FY07 corresponding period). The changes to SLT's ownership with the exit of Japan's NTT Corporation ('A+'/Stable) do not appear to have resulted in any notable changes to its business or financial strategy. Fitch understands that the Government of Sri Lanka (GoSL, 'B+' Long-term local currency IDR; more than 50% effective ownership in SLT) is in negotiation with Usaha Tegas Sdn Bhd (UT, a major shareholder of Maxis Communications Berhad of Malaysia) which acquired NTT's stake, with regards to various administrative arrangements. SLT's Long-term local currency IDR, which is a notch higher than Sri Lanka's LTLC IDR, takes into consideration the former's strong standalone financial profile in addition to GoSL's majority ownership, the weak macroeconomic domestic environment and the risks stemming from an evolving regulatory framework. Fitch expects competition to increase, particularly in the mobile segment, following the launch of services by India's Bharti Airtel Limited ('BB+'/Stable) as the fifth mobile operator later this year. The weak macroeconomic environment in Sri Lanka with sustained high inflation has set a more challenging stage for the telecom operators - operating costs are increasing, and the operators are witnessing lower usage levels and experiencing more difficulties penetrating in to the lower income segments. This is evident in SLT's margins - its EBITDA margins have deteriorated in the nine months to September 2008 to 43% from 46% a year ago. SLT's capex is expected to increase through FY10 in order to expand coverage and capacity, as well as to make the transition to an IP-based Next Generation Network. This could result in SLT generating negative free cash flow over the next two years. However, barring any substantial increase in cash returns to shareholders, SLT should be able to revert quickly back to positive FCF generation once its capex moderates. Notwithstanding this, SLT is expected to maintain a strong financial profile and credit metrics appropriate for its current ratings. SLT's debt maturities will increase in FY09 with the US$100 million notes falling due. The company has built-up cash reserves (LKR17 billion (US$155 million) at September 2008) to repay this liability. Its medium-term liquidity is supported by strong cash generation, low debt maturities and good access to bank funding. SLT had total debt of LKR19.1 billion at September 2008 and very low net debt with strong cash balances. Leverage measured by adjusted debt net of cash to EBITDA was 0.1x for 9M08. Fitch expects SLT to maintain its net leverage below 1.0x over the short- to medium-term. However, a negative rating action could be taken if net leverage increases to over 1.5x on a sustained basis and/or any action by shareholders which might be detrimental to its financial profile. =============== X X X X X X X X =============== * Detroit Three In Talks With Union to Stop Idled Worker Payment ---------------------------------------------------------------- General Motors Corp., Ford Motor Co., and Chrysler LLC are negotiating with the United Auto Workers union to stop a program that pays idled workers, Matthew Dolan at The Wall Street Journal reports, citing people familiar with the matter. Gary Haber at The News Journal relates that "jobs bank" is a unique protection for laid-off workers. According to the report, laid-off workers are placed in the jobs bank, where they can get about 95% of their usual pay and benefits. WSJ says that GM, Ford Motor, and Chrysler are trying to eliminate or scale back the program as part of an effort to secure a US$25 billion loan from the government. The News Journal states that the jobs bank doesn't start until laid-off employees exhaust a period of unemployment benefits and supplemental pay from the company. Citing GM spokesperson Tony Sapienza, the News Journal states that said that the workers can start benefiting from the jobs bank when they have been idled for 48 weeks. The report states that the workers would get unemployment benefits and supplemental pay of 85% of pay. GM, according to the report, can remain in the jobs bank for up to two years, but will lose their pay and benefits if they refuse a single job offer at a GM plant within 50 miles of their home plant, or turn down four job offers at GM plants more than 50 miles away. Critics say that the "jobs banks" are a disadvantage for GM, Ford Motor, and Chrysler, as they are an "overly generous benefit" at firms that report billions in losses, The News Journal states. The News Journal quoted UAW President Ron Gettelfinger as saying, "We're on the verge of eliminating that provision." UAW Wants Cos. to Curb Corporate Pay, Bonuses & Severance Pays Citing Gettelfinger, Reuters relates that Ford Motor, GM, and Chrysler should limit corporate pay, bonuses, and severance packages in return for government loans. Reuters quoted Mr. Getterlfinger as saying, "They need to establish that executive compensation is something that they're willing to curtail, as well as bonuses and 'golden parachutes' on exiting the business. They can also give the government an equity stake in the business." Mr. Gettelfinger said on CNN that the automakers need a loan to help them survive a tough period. According to WSJ, Mr. Gettelfinger said, "It's not just here in the United States and this is not a bailout, this is a loan, a bridge loan that will get us through until we can take a longer term look at what needs to be done in the industry." Union wages weren't the key cause of waning sales at the companies, Reuters states, citing Mr. Gettelfinger. 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. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Moody's Investors Service lowered the debt ratings of Ford Motor Company, Corporate Family and Probability of Default Ratings to Caa1 from B3. The company's Speculative Grade Liquidity rating remains at SGL-3 and the rating outlook is negative. In a related action Moody's also lowered the long-term rating of Ford Motor Credit Company to B3 from B2. The outlook for Ford Credit is negative. As reported in the Troubled Company Reporter on Oct. 10, 2008, Fitch Ratings downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company by one notch to 'CCC' from 'B-'. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Dec. 3, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday Party McCormick & Schmick's, Las Vegas, Nevada Contact: 702-952-2480 or www.turnaround.org Dec. 3, 2008 TURNAROUND MANAGEMENT ASSOCIATION Christmas Function Terminal City Club, Vancouver, British Columbia Contact: 503-768-4299 or www.turnaround.org Dec. 3-5, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ Dec. 8, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday Gathering TBD, Long Island, New York Contact: 631-251-6296 or www.turnaround.org Dec. 9, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer Washington Athletic Club, Seattle, Washington Contact: 503-768-4299 or www.turnaround.org Dec. 11, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer University Club, Portland, Oregon Contact: 503-768-4299 or www.turnaround.org Dec. 18, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer TBD, Phoenix, Arizona Contact: 623-581-3597 or www.turnaround.org Dec. 31, 2008 TURNAROUND MANAGEMENT ASSOCIATION Sponsorships - Annual Golf Outing, Various Events TBA, New Jersey Contact: 908-575-7333 or www.turnaround.org Jan. 21-22, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Bellagio, Las Vegas, Nevada Contact: www.turnaround.org Jan. 22-23, 2009 TURNAROUND MANAGEMENT ASSOCIATION Distressed Investing Conference Bellagio, Las Vegas, Nevada Contact: www.turnaround.org Jan. 22-23, 2009 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colorado Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 5-7, 2009 AMERICAN BANKRUPTCY INSTITUTE Caribbean Insolvency Symposium Westin Casurina, Grand Cayman Island, AL Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 25-27, 2009 AMERICAN BANKRUPTCY INSTITUTE Valcon Four Seasons, Las Vegas, Nevada Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 13, 2009 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Beverly Wilshire, Beverly Hills, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 17-18, 2009 NATIONAL ASSOCIATION OFBANKRUPTCY TRUSTEES NABT Spring Seminar The Peabody, Orlando, Florida Contact: http://www.nabt.com/ Apr. 20, 2009 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference John Adams Courthouse, Boston, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 27-28, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org Apr. 28-30, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ May 14-16, 2009 ALI-ABA Chapter 11 Business Reorganizations Langham Hotel, Boston, Massachusetts Contact: http://www.ali-aba.org June 11-13, 2009 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ July 16-19, 2009 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Mt. Washington Inn Bretton Woods, New Hampshire Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 15-18, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ BEARD AUDIO CONFERENCES 2006 BACPA Library Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Carve-Out Agreements for Unsecured Creditors Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES China\u2019s New Enterprise Bankruptcy Law Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Corporate Bankruptcy Bootcamp: A Nuts & Bolts Primer for Navigating the Restructuring Process Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency \u2013 Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Claims Trading Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Examining the Examiners: Pros and Cons of Using Examiners in Chapter 11 Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Handling Complex Chapter 11 Restructuring Issues Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES IP Rights In Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES New 'Red Flag' Identity Theft Rules Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Non-Traditional Lenders and the Impact of Loan-to-Own Strategies on the Restructuring Process Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Partnerships in Bankruptcy: Unwinding The Deal Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers\u2014the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Technology as a Competitive Advantage For Today\u2019s Legal Processes Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Battle of Green & Red: Effect of Bankruptcy on Obligations to Clean Up Contaminated Property Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Subprime Sector Meltdown: Legal Developments and Latest Opportunities Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Twenty-Day Claims Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite Corporate Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite M&A and Insolvency Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ ********* 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. Pius Xerxes V. Tovilla, Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante, 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 ***