/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/081208.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 Monday, December 8, 2008, Vol. 11, No. 243 Headlines A U S T R A L I A A.C.N. 111 715 907 ET AL: Declares First and Final Dividend A.C.N. 111 715 907 ET AL: To Hold Members' Meeting on December 10 ACN 082 870 031: Commences Liquidation Proceedings ALLIED FOOD: Members and Creditors Hear Wind-Up Report COVENANT NOMINEES: Enters Wind-Up Proceedings DELIZIA DELICACIES: Placed Under Voluntary Liquidation DEEP BLUE: Enters Wind-Up Proceedings FAIRFAX MEDIA: CEO Resigns, Replacement to be Determined Wednesday FUTURETECH ELECTRONICS: Members and Creditors Hear Wind-Up Report G.K. & J.H.: Placed Under Voluntary Liquidation HJK INVESTMENTS: Placed Under Voluntary Liquidation K FACTOR SHEETMETAL: Placed Under Voluntary Liquidation PARBCO PTY: Members and Creditors Receive Wind-Up Report PARK 'N' VIDS: Members and Creditors Hear Wind-Up Report QUALITY STRATA: Commences Liquidation Proceedings R. EDMONDS & ASSOCIATES: Declares First and Final Dividend SEBOO PTY: Placed Under Voluntary Liquidation XERIUM TECHNOLOGIES: To Cease Operations at Aussie, Vietnam Units C H I N A OKAY AIRWAYS: Suspends Flights for One Month H O N G K O N G ASIA ALUMINUM: S&P Cuts Rating on US$450MM Sr. Notes to 'B-' CAPITAL SILVER: Placed Under Voluntary Liquidation CCA HK: Placed Under Voluntary Liquidation CHAODA MODERN: S&P Downgrades Corporate Credit Rating to 'BB-' CITIBAGS & LUGGAGE: Members' Final Meeting Set for January 6 E28 HONG KONG: Placed Under Voluntary Liquidation KONG THAI: Creditors' Proofs of Debt Due on January 6 L.P. CONTRACTORS: Annual Meetings Set for December 19 ORIENT AIR: Members' Final Meeting Set for January 13 SKY FOX: Creditors' Proofs of Debt Due on January 6 VISTAMARINE LIMITED: Hague Cease to Act as Liquidator I N D I A ASIS LOGISTICS: CRISIL Rates Rs.100.0 Mil. Cash Credit at 'BB+' C.M. SMITH: CRISIL Rates Rs.159.0 Mil. Cash Credit at 'BB+' DELTA FINOCHEM: CRISIL Rates Rs.18.00 Mil. Term Loan at 'BB' GENERAL MOTORS: Moody's Cuts Corporate Family & Debt Ratings to Ca GENERAL MOTORS: Reports 154,877 Deliveries in November 2008 PACIFICA: CRISIL Rates Rs 200 Mil. Cash Credit at 'BB+' SHIRDI INDUSTRIES: CRISIL Rates Rs.230.0 Mil. Cash Credit at 'BB+' TOSHNIWAL ASSOCIATES: CRISIL Rates Rs. 2.5MM Cash Credit at 'B+' I N D O N E S I A * INDONESIA: ADB Grants US$350 Million Loan J A P A N DELPHI CORP: Court OKs Creditors' Retention of Moelis & Co. DELPHI CORP: Wins Court OK for GM Liquidity Enhancement Deals FORD MOTOR: Car Sales Drop to 118,818; Down 30% from 2007 FORD MOTOR: Sufficient Liquidity Cues Moody's to Keep Caa1 Ratings K O R E A BALLY TOTAL: Gets Access to Cash Collateral to Fund Ch. 22 Case HYUNDAI MOTOR: Cuts Production at Overseas Plants KOOKMIN BANK: Mulls Job Cuts Through Voluntary Retirement Scheme KOOKMIN BANK: To Sell KRW500 Bil. New Shares to Parent M A L A Y S I A OCI BERHAD: Sets Annual General Meeting on December 22 N E W Z E A L A N D AUTO NET: Court to Hear Wind-Up Petition on February 18 BSB CONSTRUCTION: Fixes December 19 as Last Day to File Claims BUYERS AGENT ET AL: Fixes Jan. 30 as Last Day to File Claims MIT PLASTERING: Court to Hear Wind-Up Petition on December 15 MOTHERS FAVOURITES: Commences Liquidation Proceedings NETTEN FARM: Appoints Parsons and Kenealy as Liquidators NEW ZEALAND AIR: Creditors' Proofs of Debt Due on December 17 PINEHURST LTD: Court Hears Wind-Up Petition PROPERTY EDGE: Court Hears Wind-Up Petition TATTOO BRAND: Commences Liquidation Proceedings P H I L I P P I N E S OCEANAGOLD: Puts Didipio Project Under Maintenance SECURITY BANK: Completes PHP3.0 Bil. Offering Thru Notes Issue S R I L A N K A PAN ASIA: Fitch Puts 'BB+' Rating on Proposed Sub. Debenture Issue VALLIBEL FINANCE: Fitch Affirms Long-Term Rating at 'B+' S O U T H A F R I C A * SOUTH AFRICA: Global Slowdown Puts Many Jobs at Risk T A I W A N WAN HAI: Industry Risks Cue S&P to Cut Corp. Credit Rating to BB+ X X X X X X X X * Detroit 3 Willing to Work Under Gov't Oversight Board - - - - - ================= A U S T R A L I A ================= A.C.N. 111 715 907 ET AL: Declares First and Final Dividend ----------------------------------------------------------- On December 3, 2008, a first and final dividend was declared for the creditors of: -- A.C.N. 111 715 907 Pty Ltd; -- A.C.N. 111 715 907; -- Redbank Plains Veterinary Surgery Pty Ltd; -- A.C.N. 051 155 698; -- A.C.N. 082 535 082 Pty Ltd; -- A.C.N. 082 535 082; -- A.C.N. 078 734 111 Pty Ltd; -- A.C.N. 078 734 111; -- Kaesler Brothers Pty Ltd; -- A.C.N. 007 511 999; -- Bushby & Bell Auctioneers Pty. Ltd.; -- A.C.N. 009 565 762; -- Graham Withers Equipment Co. Pty. Ltd.; -- A.C.N. 004 966 170; -- Progesterone Naturally Pty Ltd; -- A.C.N. 094 481 624; -- A.C.N. 091 096 623 Pty Ltd; -- A.C.N. 091 096 623; -- Periden Holdings Pty. Ltd.; and -- A.C.N. 005 011 012 Pty Ltd. The companies' liquidator is: Richard Judson Members Voluntarys Pty Ltd 10 Park Road, 1st Floor Cheltenham VIC 3192 A.C.N. 111 715 907 ET AL: To Hold Members' Meeting on December 10 ----------------------------------------------------------------- On December 10, 2008, a final meeting will be held for the members of: -- A.C.N. 111 715 907 Pty Ltd; -- A.C.N. 111 715 907 at 11:45 a.m.; -- Aimnsw Pty Ltd; -- A.C.N. 108 943 611 at 9:00 a.m.; -- Redbank Plains Veterinary Surgery Pty Ltd; -- A.C.N. 051 155 698 at 9:15 a.m.; -- Lavor Australia Pty Limited; -- A.C.N. 109 217 487 at 9:30 a.m.; -- A.C.N. 082 535 082 Pty Ltd; -- A.C.N. 082 535 082 at 9:45 a.m.; -- A.C.N. 078 734 111 Pty Ltd; -- A.C.N. 078 734 111 at 10:00 a.m.; -- Kaesler Brothers Pty Ltd; -- A.C.N. 007 511 999 at 10:15 a.m.; -- Bushby & Bell Auctioneers Pty. Ltd.; -- A.C.N. 009 565 762 at 10:30 a.m.; -- Dazono Pty Ltd; -- A.C.N. 003 130 014 at 10:45 a.m.; -- Graham Withers Equipment Co. Pty. Ltd.; -- A.C.N. 004 966 170 at 11:00 a.m.; -- Progesterone Naturally Pty Ltd; -- A.C.N. 094 481 624 at 11:15 a.m.; -- A.C.N. 091 096 623 Pty Ltd; -- A.C.N. 091 096 623 at 11:30 a.m.; -- Periden Holdings Pty. Ltd.; and -- A.C.N. 005 011 012 Pty Ltd at 11:55 a.m. At the meeting, Richard Judson, the company's liquidator, will give a report on the companies' wind-up proceedings and property disposal. The Liquidator can be reached at: Richard Judson Members Voluntarys Pty Ltd 10 Park Road, 1st Floor Cheltenham VIC 3192 ACN 082 870 031: Commences Liquidation Proceedings -------------------------------------------------- During a general meeting held on September 24, 2008, the members of ACN 082 870 031 Pty Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Peter Mccluskey Ferrier Hodgson 600 Bourke Street, Level 29 Melbourne VIC 3000 Telephone:(03) 9600 4922 Facsimile:(03) 9642 5887 DX Number 125, Melbourne ALLIED FOOD: Members and Creditors Hear Wind-Up Report ------------------------------------------------------ The members and creditors of Allied Food Marketers Pty Limited met on November 17, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robert Elliott Hall Chadwick 416 - 420 Collins Street, Level 10 Melbourne VIC 3000 COVENANT NOMINEES: Enters Wind-Up Proceedings --------------------------------------------- At an extraordinary general meeting held on September 25, 2008, the members of Covenant Nominees Pty Ltd resolved to voluntarily liquidate the company's business. The company's liquidators are: Richard John Cauchi David James Lofthouse Level 3, CJL Partners 180 Flinders Lane, Melbourne DELIZIA DELICACIES: Placed Under Voluntary Liquidation ------------------------------------------------------ The members of Delizia Delicacies Pty. Ltd. met on September 24, 2008, and resolved to voluntarily liquidate the company's business. The company's liquidators are: Anthony Robert Cant Simon Patrick Nelson Romanis Cant, Chartered Accountants 106 Hardware Street, Melbourne DEEP BLUE: Enters Wind-Up Proceedings ------------------------------------- At an extraordinary general meeting held on September 25, 2008, the members of Deep Blue Capital Pty Ltd resolved to voluntarily liquidate the company's business. The company's liquidators are: Richard John Cauchi David James Lofthouse Level 3, CJL Partners 180 Flinders Lane, Melbourne FAIRFAX MEDIA: CEO Resigns, Replacement to be Determined Wednesday ------------------------------------------------------------------ Fairfax Media Limited Chief Executive Officer David Kirk has resigned from his post, the company said in a statement Friday last week. Deputy Chief Executive Officer Brian McCarthy will act as interim Chief Executive until the Board meets Wednesday, December 10. According to Bloomberg News, Mr. Kirk quit after failing to turn around circulation declines amid the slowest economic growth in eight years. Bloomberg News says the company has fired the editors of its metropolitan broadsheets in Sydney and Melbourne in the past six months. Fairfax, Bloomberg News relates, has slumped 69 percent in Sydney trading this year because of concern about its AU$2.5 billion (US$1.6 billion) of debt, declining newspaper sales and a loss of classified advertising to online rivals. In a separate report, Bloomberg News said according to the Sydney Morning Herald, Fairfax's biggest shareholder, Marinya Media, indicated it would support a reduction in the dividend after other large investors urged the board to use the funds to cut debt. Major shareholders 452 Capital and Perpetual Investments have already called for a reduction in the dividend payout to reduce the company's AU$2.5 billion (US$1.6 billion) of debt, the report said. Headquartered in Sydney, Australia, Fairfax Media Limited (ASX:FXJ) -- http://www.fxj.com.au/-- is engaged in publishing of news, information and entertainment; advertising sales in newspaper, magazine and online formats; radio broadcasting, and film and television production and distribution. In Australia, the Company's mastheads include The Sydney Morning Herald, The Age, BRW, The Sun-Herald and The Land. Its New Zealand mastheads include The Dominion Post, The Press and Cuisine. Fairfax Media online businesses include Fairfax Digital in Australia (including the news sites, smh.com.au and theage.com.au, and classified and transaction Websites), and Trade Me and stuff.co.nz in New Zealand. On November 9, 2007, it acquired the former Southern Cross Broadcasting's radio business, (including metropolitan stations 2UE in Sydney, 3AW and Magic 1278 in Melbourne, 4BC and 4BH in Brisbane, and 6PR and 96FM in Perth), the Southern Star television production and distribution business, Satellite Music Australia and associated businesses from Macquarie Media Group. FUTURETECH ELECTRONICS: Members and Creditors Hear Wind-Up Report ----------------------------------------------------------------- The members and creditors of Futuretech Electronics Pty Ltd met on Nov. 14, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Timothy Bryce Norman Deloitte Touche Tohmatsu 180 Lonsdale Street Melbourne VIC 3000 G.K. & J.H.: Placed Under Voluntary Liquidation ----------------------------------------------- At an extraordinary general meeting held on October 1, 2008, the members of G.K. & J.H. Radford Pty. Ltd. resolved to voluntarily liquidate the company's business. The company's liquidators are: Nicholas Giasoumi Roger Darren Grant Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East VIC 3123 HJK INVESTMENTS: Placed Under Voluntary Liquidation --------------------------------------------------- At an extraordinary general meeting held on May 26, 2008, the members of HJK Investments Pty Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: John Finlay Finlay & Co Pty Ltd Suite 4 83, Wellington Street St Kilda Vic 3182 K FACTOR SHEETMETAL: Placed Under Voluntary Liquidation ------------------------------------------------------- The members of K Factor Sheetmetal Pty Ltd met on September 29, 2008, and resolved to voluntarily liquidate the company's business. The company's liquidators are: Gideon Isaac Rathner David John Coyne Lowe Lippmann, Chartered Accountants 5 St Kilda Road St Kilda Vic 3182 e-mail grathner@lowelippmann.com.au PARBCO PTY: Members and Creditors Receive Wind-Up Report -------------------------------------------------------- The members and creditors of Parbco Pty Ltd met on Nov. 14, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter Gountzos CJL Partners 180 Flinders Lane, Level 3 Melbourne VIC 3000 Telephone:(03) 9639 4779 Facsimile:(03) 9639 4773 PARK 'N' VIDS: Members and Creditors Hear Wind-Up Report -------------------------------------------------------- The members and creditors of Park 'N' Vids Pty Ltd met on Nov. 17, 2008, and received the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Peter Goodin Brooke Bird Insolvency Practitioners 471 Riversdale Road East Hawthorn VIC 3123 Telephone:(03) 9882 6666 QUALITY STRATA: Commences Liquidation Proceedings ------------------------------------------------- During a general meeting held on September 30, 2008, the members of Quality Strata Maintainence Co Pty Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Roger David Midgley Smith 126 George Street Morwell, VIC 3840 R. EDMONDS & ASSOCIATES: Declares First and Final Dividend ---------------------------------------------------------- R. Edmonds & Associates Pty Ltd declared the first and final dividend on November 24, 2008. Only creditors who were able to file their proofs of debt by November 17, 2008, were included in the company's dividend distrubution. The company's liquidator is: Peter Goodin Brooke Bird & Co Chartered Accountants 471 Riversdale Road Hawthorn East VIC 3123 Telephone:(03) 9882 6666 SEBOO PTY: Placed Under Voluntary Liquidation --------------------------------------------- During a general meeting held on October 3, 2008, the members of Seboo Pty Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: G. S. Andrews G S Andrews & Associates 22 Drummond Street Carlton VIC 3053 Telephone:(03) 9662 2666 Facsimile:(03) 9662 9544 XERIUM TECHNOLOGIES: To Cease Operations at Aussie, Vietnam Units ----------------------------------------------------------------- Xerium Technologies, Inc., announced on December 3, 2008, the launch of its newly created Paper Machine Clothing Global Supply Strategy. Consistent with the company's strategy to continually identify and implement changes to reduce its cost structure while improving its customer responsiveness, the company has decided to concentrate its new product and manufacturing process investments in its existing global production network. This strategy will focus production in the company's most efficient plants located closest to its global customers while improving product quality and reducing customer order lead times. As part of executing this strategy in the Asia/Pacific Region, the company intends to cease production at its Huyck Wangner clothing facility in Geelong, Australia, by the end of the first quarter 2009. The company also plans to discontinue construction of its new Vietnam clothing facility. Xerium plans to retain a sales and distribution operation in Australia to service customers throughout Southeast Asia, Australia, and New Zealand. The company also plans to retain the Vietnam facility while it evaluates its long term potential. "Our new global supply strategy is the result of evaluating alternative paths for the company to improve its cost structure while simultaneously improving its customer order response times," said Stephen Light, Chairman, President, and Chief Executive Officer. "As part of this initiative, we are developing the capability to produce nearly all of our current and future products at our highly efficient existing plants nearest to our customers. Consequently we will direct future capital investment in equipment and product technology to our existing 'Centers of Excellence,' realign production capacity and technical capabilities among existing facilities to minimize production costs, and minimize time to market of both existing and new products. These changes are essential in this dynamic market, where our customers are facing unprecedented challenges. Our plan is to continue to introduce highly competitive leading technology products that address our customers' need to improve their productivity and lower their costs, while we simultaneously continue to pay down our debt. The changes we are announcing today are consistent with the company's strategies of debt reduction, product innovation and the reliance on the talents and dedication of our people." The actions in the Asia/Pacific Region will impact approximately 15 salaried and 150 hourly employees at the Huyck Wangner, Geelong Australia facility, and approximately 50 salaried and hourly personnel in Ho Chi Minh City, Vietnam. Combined reductions in Asia Pacific manufacturing represent approximately 6% percent of the company's workforce. The company expects to record restructuring expenses of approximately US$8 million to US$10 million in the fourth quarter of 2008, of which US$5 million to US$6 million is principally for severance to be paid through the first half of 2009 and an impairment loss of US$3 million to US$4 million. The company expects to incur US$1 million to US$3 million of other restructuring costs throughout 2009 related to these announcements. In addition, the company is evaluating the future use of equipment located in Australia, and may transfer the equipment to other facilities when economically justified and, if transferred, would record expense to dismantle and move such equipment. About Xerium Technologies Based on Youngsville, North Carolina, Xerium Technologies Inc. (NYSE: XRM) -- http://www.xerium.com/-- manufactures and supplies two types of consumable products used in the production of paper: clothing and roll covers. With 35 manufacturing facilities in 15 countries around the world, Xerium has approximately 3,700 employees. * * * As disclosed in the Troubled company Reporter on October 1, 2008, Standard & Poor's Ratings Services raised its ratings on Xerium Technologies Inc., including raising the long-term corporate credit rating to 'B-' from 'CCC+'. The outlook is stable. "The upgrade is based on the increased likelihood that Xerium will satisfy its covenants in the fourth quarter and maintain adequate liquidity in the near term," said Standard & Poor's credit analyst Sarah Wyeth. The ratings on Youngsville, North Carolina-based Xerium reflect the company's highly leveraged balance sheet, its limited liquidity, its modest size as a supplier to niche markets, and its dependence on the papermaking industry, all of which limit the company's organic growth potential. Partly mitigating these weaknesses are the company's good operating margins, its geographic diversity, and the strong competitive position of its niche product. However, Standard & Poor's notes that Xerium's end markets continue to be challenging and competitive. If EBITDA declines more than 5% from its current level and the company does not reduce debt in excess of mandatory payments, the leverage covenant could become tight in 2010 and S&P could revise the outlook to negative or lower the rating. ========= C H I N A ========= OKAY AIRWAYS: Suspends Flights for One Month -------------------------------------------- Li Wei, Okay Airways spokesman, confirmed the carrier will suspend passenger services for one month from Dec. 15, 2008, The China Post reported. "It's because our shareholders have conflicting opinions about the business," the Post cited spokesman Li as saying in a phone interview. Citing China Business News, Reuters relates that Juneyao Group, controlling shareholder of Okay Airways, filed an application in November to the authority to suspend Okay's passenger service. According to Reuters, Okay spokesman Han Jing said the airline received verbal approval on Wednesday, Dec. 3, from the Civil Aviation Administration of China, allowing it to halt passenger operations on Dec. 15. China Post recalls that Okay Airways and Junyao Group agreed in March 2006 to share personnel, routes, marketing and managerial expertise as they struggled for a footing in China's intensively competitive air transport market. Reuters discloses that Juneyao's chairman, Wang Junjin, was quoted by China Business as saying that Okay Airways needed to increase profitability and make a turnaround in passenger services in the face of the global financial crisis. Established in 2005, Okay Airways operates cargo and passenger flights across China. The airline has 11 planes and flies more than 20 domestic passenger routes. Its cargo operations are a local partner of Fedex Corp. =============== H O N G K O N G =============== ASIA ALUMINUM: S&P Cuts Rating on US$450MM Sr. Notes to 'B-' ------------------------------------------------------------ Standard & Poor's Ratings Services said that it had lowered its long-term corporate credit rating on Asia Aluminum Holdings Ltd. to 'B' from 'B+'. The outlook is negative. At the same time, Standard & Poor's lowered its issue rating on the company's US$450 million senior unsecured notes due 2011 to 'B-' from 'B+'. "The lower rating on AAH reflects the weaker-than-expected im provement in the company's credit metrics over a prolonged period, due to the slower-than-expected completion of its flat-rolled products facility in Zhaoqing, Guangdong province. The lower is sue rating reflects S&P's expectation that AAH needs to incur more onshore Chinese bank facilities to fund the commissioning of its FRP facility within fiscal 2009, and that this will place bond holders in a more subordinated position than before," said S&P's credit analyst Bei Fu. AAH's credit protection metrics will likely come under pressure in fiscal 2009 because of the company's HK$1 billion in funds to com mission the FRP facility and due to the challenging market condi tions stemming from the economic slowdown. If the parent's pay ment-in-kind notes are included, AAH's ratio of funds from opera tions to debt would be less than 10% in fiscal 2009. Similarly, its ratio of debt to EBTIDA is likely to remain above 7x (includ ing PIK notes) over the next 12 months. In addition, AAH's liq uidity position should come under further pressure in fiscal 2010 when AAH is required to start paying the PIK note coupon of close to US$100 million each year. Positively, once the FRP plant is fully operational, AAH's finan cial metrics could improve materially in the next two to three years, provided the company does not undertake any new heavily debt-funded capital-spending projects. This improvement would be attributable to the significant increase in production capacity and the contribution from high-value flat-rolled products. If the FRP facility is as highly efficient as expected, the company will be well positioned to benefit from the relatively strong demand projected for China in the long term. The company targets the FRP project to be commissioned in the first quarter of calendar 2009, ramping up to full operation with a capacity of 400,000 metric tons in 2011. Nevertheless, there is some uncertainty over whether the facility can be successfully commissioned within the targeted timeframe. The recent slowdown in the global and Chinese economies also adds to uncertainty over demand prospects. CAPITAL SILVER: Placed Under Voluntary Liquidation -------------------------------------------------- At an extraordinary general meeting held on November 26, 2008, the shareholders of Capital Silver Recycling Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Leung Chi Wing Kiu Fu Commercial Building Room B, 4th Floor 300 Lockhart Road Wanchai, Hong Kong CCA HK: Placed Under Voluntary Liquidation ------------------------------------------ On November 24, 2008, the sole member of CCA HK Limited resolved to voluntarily liquidate the company's business. The company's liquidators are: Duncan Alan Abernethy Christopher Robert Banks Todd Building, Level 14 95 Customhouse Quay PO Box 3142, Wellington 6140 New Zealand CHAODA MODERN: S&P Downgrades Corporate Credit Rating to 'BB-' -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Chaoda Modern Agriculture Ltd. to 'BB-' from 'BB'. The rating outlook is negative. S&P's also lowered the issue rating on Chaoda's US$225 million senior note due February 2010 and HK$1.34 billion convertible bond due May 2011 (redeemable in May 2009) to 'BB-' from 'BB'. "The downgrade reflects Chaoda's weaker liquidity position pressured by two large bullet debt repayments due in the next 15 months, lack of financial flexibility, and a continued aggressive growth appetite, despite the substantial near-term refinancing need," said S&P's credit analyst Bei Fu. Chaoda's low cash holdings and limited credit facility available is unlikely to cover its debt obligation. S&P expects the put option on the outstanding HK$1.34 billion convertible bonds to be exercised in May 2009 at a premium of 15.97%. Total cash of Chinese renminbi 1.3 billion as of end-July 2008 is insufficient to cover the CB repayment. Chaoda will face a further US$225 million senior note repayment in February 2010. Chaoda's financial flexibility is limited. The refinancing risk is heightened by a lack of clarity in its refinancing plan and an aggressive capital expenditure plan. For 2009-2011, Chaoda expects to maintain its capital expenditures comparable to the last three years. Chaoda's steady growth in production area reserves over the past three years should provide some flexibility in capital expenditure schedule, depending on its financial position. S&P believes the company's operating cash inflow in fiscal 2009 could be pressured by lower sales, as the weaker economy could force consumers to opt for cheaper alternatives and the heightened food safety issue in China reduces the country's food export competitiveness. The continued negative free operating cash flow is unlikely to support the two debt repayments due in the next 15 months. "The rating could be lowered if (1) the company's liquidity weakens materially such that cash falls below RMB1 billion, (2) the company does not adjust its capital spending to support its debt obligations; or (3) it introduces a more aggressive shareholder capital return initiative," Ms. Fu said. CITIBAGS & LUGGAGE: Members' Final Meeting Set for January 6 ------------------------------------------------------------ The members of Citibags & Luggage Manufacturing Limited will hold their final meeting on January 6, 2009, at 11:00 a.m., at Room 1202 of Tung Ming Building, 42 Des Voeux Road, in Central, Hong Kong. At the meeting, Lau Kwok Kwong Arthur, the company's liquidator, will give a report on on the company's wind-up proceedings and property disposal. E28 HONG KONG: Placed Under Voluntary Liquidation ------------------------------------------------- At an extraordinary general meeting held on November 21, 2008, the members of E28 Hong Kong Limited resolved to voluntarily liquidate the company's business. The company's liquidators are: Liu Chi Tat Stephen Kwan Pak Kong C C Wu Building, Rm. 1304, 13th Floor 302-308 Hennessy Road Wanchai, Hong Kong KONG THAI: Creditors' Proofs of Debt Due on January 6 ----------------------------------------------------- The creditors of Kong Thai Rice Trading Limited are required to file their proofs of debt by January 6, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Dec. 2, 2008. The company's liquidator is: Lin Fai Yau Milo's Industrial Building, 1st Floor 2-10 Tai Yuen Street Kwai Chung, N.T. L.P. CONTRACTORS: Annual Meetings Set for December 19 ----------------------------------------------------- The members and creditors of L.P. Contractors & Construction Co. (Hong Kong) Limited will hold their annual meeting on Dec. 19, 2008, at 2:00 p.m. and 2:30 p.m., respectively at the office of Hastings & Co., 5th Floor of Gloucester Tower, The Landmark, in 11 Pedder Street, Hong Kong. At the meeting, Lo Wing Hung, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ORIENT AIR: Members' Final Meeting Set for January 13 ----------------------------------------------------- The members of Orient Air (HK) Limited will hold their final meeting on January 13, 2008, at 10:00 a.m., at the 20th Floor of Greatmany Centre, 111 Queen's Road East, in Wanchai, Hong Kong. At the meeting, Law Kai Lo will give a report on on the company's wind-up proceedings and property disposal. SKY FOX: Creditors' Proofs of Debt Due on January 6 --------------------------------------------------- The creditors of Sky Fox Investment Limited are required to file their proofs of debt by January 6, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Nov. 19, 2008. The company's liquidators are: Lai Kar Yan (Derek) Darach E. Haughey One Pacific Place, 35th Floor 88 Queensway Hong Kong VISTAMARINE LIMITED: Hague Cease to Act as Liquidator ----------------------------------------------------- On November 25, 2008, David Richard Hague cease to act as liquidator of Vistamarine Limited. The company's former Liquidator can be reached at: David Richard Hague Prince's Building, 22nd Floor Central, Hong Kong ========= I N D I A ========= ASIS LOGISTICS: CRISIL Rates Rs.100.0 Mil. Cash Credit at 'BB+' --------------------------------------------------------------- CRISIL has assigned its ratings of 'BB+/Stable/P4' to the bank facilities of Asis Logistics Ltd (ALL). Rs.100.0 Million Cash Credit BB+/Stable(Assigned) Rs.100.0 Million Term Loan BB+/Stable(Assigned) Rs.5.0 Million Bank Guarantee P4(Assigned) The ratings reflect ALL's small scale of operations, high working capital requirements, increasing share of low-margin transportation business in its revenue mix, and susceptibility of its operating margins to economic downturns. These weaknesses are mitigated by the company's integrated business model in consulting, transportation, and custom house agent (CHA) services, and its healthy financial risk profile, marked by a comfortable gearing and adequate debt protection measures. Outlook: Stable CRISIL expects ALL to maintain its stable business and financial risk profile over the medium term. The outlook may be revised to 'Positive' if the company's scale of operations increases substantially. Conversely, it may be revised to 'Negative' if the company incurs large debt-funded capital expenditure, resulting in deterioration in its financial risk profile. About Asis Logistics Incorporated in 1993, ALL began operations by offering foreign trade and investment advisory services. It commenced transport services in 2004 and warehousing and material handling facilities in 2006. In 2006-07 (refers to financial year, April 1 to March 31), ALL took over one of its group companies Asis Overseas (C&F) Pvt Ltd, engaged in customs clearing and forwarding. In 2007-08, its group companies Shirdi Industries Ltd and Asis Industries Ltd acquired 43 per cent and 40 per cent, respectively, of the equity in ALL. For 2007-08, ALL reported a profit after tax (PAT) of Rs.47 million on net revenues of Rs.618 million, as against a PAT of Rs.27 million on net revenues of Rs.299 million in the previous year. C.M. SMITH: CRISIL Rates Rs.159.0 Mil. Cash Credit at 'BB+' ----------------------------------------------------------- CRISIL has assigned its ratings of 'BB+/Stable/P4' to the bank facilities of C.M. Smith and Sons Ltd (CMS). Rs.159.0 Million Cash Credit* BB+/Stable (Assigned) Rs.420.6 Million Term Loan BB+/Stable (Assigned) Rs.1.5 Million Bank Guarantee P4 (Assigned) *Fungible with Export Packing Credit up to Rs.40.0 million The ratings reflect the company's large capital expenditure (capex) plans, and small scale of operations, which restrict its financial flexibility. These rating weaknesses are mitigated by the company's diversified product portfolio, and established market position in the castings business. Outlook: Stable CRISIL expects CMS to maintain a stable credit risk profile on the back of its diversified business portfolio. The outlook may be revised to 'Positive' if CMS is able to successfully expand in the non-automotive component segment, while sustaining healthy profit margins and debt protection measures. Conversely, the outlook may be revised to 'Negative' if the company undertakes more-than- expected debt-funded capex, or faces significant decline in profitability levels. About C.M. Smith Established in 1943, CMS is a closely-held public company. It manufactures automotive components for large commercial vehicles, and a range of non-automotive components. The company's operations include both casting and machining components. It has long-standing relationships with large domestic auto original equipment manufacturers. Non-automotive components such as pulleys, marine engine parts, and fire extinguishing parts are sold in the local market and also exported to the European Union and the US. CMS reported a profit after tax (PAT) of Rs.43.6 million on net sales of Rs.666.2 million in 2007-08 (refers to financial year, April 1 to March 31), as against a PAT of Rs.22.6 million on net sales of Rs.598.8 million in the previous year. DELTA FINOCHEM: CRISIL Rates Rs.18.00 Mil. Term Loan at 'BB' ------------------------------------------------------------ CRISIL has assigned its rating of 'BB/Stable/P4' to the various bank facilities of Delta Finochem Pvt Ltd. Rs.18.00 Million Term Loan BB/Stable (Assigned) Rs.27.50 Million Cash Credit BB/Stable (Assigned) Rs.5.50 Million Ad-hoc Cash P4 (Assigned) Credit Limit Rs.35.00 Million Letters of P4 (Assigned) Credit Rs.1.00 Million Bank Guarantee P4 (Assigned) The rating reflects Delta Finochem's exposure to risks relating to limited earnings diversity and small scale of operations, intense competition, cyclicality in prices of raw materials, working- capital-intensive operations, and propensity to trade in the equity market. These weaknesses are, however, partially offset by Delta Finochem's established presence in the specialty organic chemicals industry (especially Quaternary Ammonium Compounds and Quaternary Phosphonium Compounds), comfortable capital structure and diversified end-user base. Outlook: Stable CRISIL expects Delta Finochem to maintain a comfortable capital structure over the medium term, while managing growth successfully. The outlook may be revised to 'Positive' if there is substantial improvement in the company's margins and overall business risk profile. Conversely, the outlook may be revised to 'Negative' if the company's gearing exceeds expectations, or if its business or financial risk profile deteriorates. About Delta Finochem Delta Finochem, promoted by Mr. D. S. Deshmukh, is a manufacturer of organic chemicals in three segments - key specialty chemicals, quaternary ammonium compounds (QACs), and quaternary phosphonium compounds (QPCs). The company supplies these chemicals to industries such as pharmaceuticals, paints and dyes, detergents, agrochemicals, and industrial chemicals. Delta Finochem has recently set up a unit to manufacture active pharmaceutical ingredients (APIs) at its existing facility at Igatpuri (near Nasik). The facility has the capacity to manufacture around 900 tonnes of chemicals per annum. The company is expanding capacities further, to accommodate new API segment requirements. For 2007-08 (refers to financial year, April 1 to March 31), Delta Finochem reported a profit after tax (PAT) of Rs.12.6 million on net sales of Rs.269.5 million, as against a PAT of Rs.14.5 million on net sales of Rs.190.7 million for 2006-07. GENERAL MOTORS: Moody's Cuts Corporate Family & Debt Ratings to Ca ------------------------------------------------------------------ Moody's Investors Service has downgraded the debt ratings of General Motors Corporation, Corporate Family and Probability of Default ratings to Ca from Caa2, in recognition of the increased probability of a balance sheet restructuring which results in a loss for current debtholders. Moody's would view the company's potential balance sheet restructuring, which is likely to cause bondholder losses, to be a distressed exchange which would be treated as a default for analytic purposes. The rating outlook is negative and the company's Speculative Grade Liquidity Rating is affirmed at SGL-4. The ratings of GMAC LLC are not affected by these GM rating actions. In its Restructuring Plan for Long-term Viability submitted to the Senate Banking Committee and House of Representatives Financial Services Committee on December 2, 2008, General Motors indicated that its restructuring plan "includes, and is conditioned upon, significant sacrifice and deleveraging of its balance sheet." Specifically, the plan references a reduction of GM's total debt, including VEBA-related obligations from US$62 billion to approximately US$30 billion with a corresponding increase in book equity from (US$65.1) billion to approximately (US$32) billion. GM has not specifically identified the mechanism for implementing the balance sheet restructuring, nor has it made any specific proposals to bondholders. Nevertheless, the plan is suggestive of a transaction that would be viewed as a distressed exchange by Moody's if implemented. Importantly, GM has indicated that its plan would "preserve the status of existing trade creditors" and "would honor terms and provisions of all outstanding warranty obligations to both consumers and dealers." Preservation of trade creditors will be critical to avoid any disruption in the company's supply chain and continuing to honor warranty obligations will help to avoid significant erosion of the company's continuing vehicle brands during the restructuring process. Failure in either of these areas could exacerbate the challenges that the company faces and increase the risk of a bankruptcy filing. In its filing, GM has requested a total of US$18 billion of government funding be made available to it to bridge the liquidity pressures which it anticipates in its business plan. According to GM, the funding would enable the company to maintain global liquidity above its minimum threshold of about US$11 billion even if automotive industry conditions were to worsen such that U.S. automotive sales were to fall to 10.5 million units in 2009. The plan calls for a reduction in the number of GM's brands, nameplates and retail dealers, cost reductions that would be designed to achieve labor cost competitiveness with foreign manufacturers in the U.S. by 2012 and changes to the company's VEBA related obligations. Moody's Senior Vice President Bruce Clark stated that "while the plan provides a general framework for a business restructuring, the success of the plan will be contingent on negotiations with labor, creditors and government agencies. The uncertainty of a successful outcome along with the likelihood of debtholder losses even if the plan succeeds is the basis for the downgrade and negative outlook." Downgrades: Issuer: General Motors Corporation -- Probability of Default Rating, Downgraded to Ca from Caa2 -- Corporate Family Rating, Downgraded to Ca from Caa2 -- Senior Secured Bank Credit Facility, Downgraded to a range of B3, LGD1, 4% from a range of B1, LGD1, 4% -- Senior Unsecured debt and IRB's, Downgraded to a range of C, LGD5, 71% from a range of Caa3, LGD4, 61% -- Senior Unsecured Shelf, Downgraded to a range of (P)C, LGD5, 71% from a range of (P)Caa3, LGD4, 61% -- Multiple Seniority Shelf for subordinated debt and preferred, Downgraded to a range of (P)C, LGD 6, 97% from a range of (P)Ca, LGD 6, 97% Issuer: General Motors Nova Scotia Finance Company -- Senior Unsecured Regular Bond/Debenture, Downgraded to a range of C, LGD5, 71% from a range of Caa3, LGD4, 61% -- Senior Unsecured Shelf, Downgraded to a range of (P)C, LGD5, 71% from a range of (P)Caa3, LGD4, 61% Issuer: General Motors of Canada Limited -- Senior Secured Bank Credit Facility, Downgraded to a range of B3, LGD1, 4% from a range of B1, LGD1, 4% Issuer: Vauxhall Motors (Finance) PLC -- Senior Unsecured Regular Bond/Debenture, Downgraded to a range of C, LGD5, 71% from a range of Caa3, LGD4, 61% The last rating action on GM was a downgrade of the company's Corporate Family Rating to Caa2 on Oct. 27, 2008. General Motors Corporation, headquartered in Detroit, Michigan, is the world's second-largest automotive manufacturer. GENERAL MOTORS: Reports 154,877 Deliveries in November 2008 ----------------------------------------------------------- General Motors Corp. dealers in the United States delivered 154,877 vehicles in November 2008, down 41% compared with a year ago. GM car sales of 58,786 were off 44% and truck sales of 96,091 were down 39%. The steep decline in vehicle sales was largely due to a significant drop in the market's retail demand compared with last year, and continuing economic uncertainty that has negatively impacted consumer confidence. "In November we saw the continuation of the dramatic decline in volume for the industry. Every manufacturer is posting awful numbers and we are no exception," said Mark LaNeve, Vice President of GM North America Vehicle Sales, Service and Marketing. "We have outstanding products in the market, so it is particularly frustrating when economic uncertainty takes our customers out of the market. There were about 34%, or 400,000, fewer vehicles sold this November in the industry than a year ago -- this is the annual volume of two full production plants that have simply evaporated in a single month. The global economic crisis and credit freeze have had a very negative impact on the vehicle market which runs on consumer confidence and available financing." Mr. LaNeve added, "The fact that we have outstanding, high quality, fuel efficient products and great deals in almost every market segment is not driving demand right now. The consumer is scared and sitting on the sideline. We need appropriate economic stimulus to get the consumer back in the game." To offer customers an outstanding value at year-end, GM's Red Tag Event continues through Jan. 5, 2009. The Red Tag Event provides great deals on most new vehicles in GM's portfolio by offering a special Red Tag vehicle price and customer cash back. GM's "Financing That Fits" program enables consumers to find financing at affordable rates from GMAC and thousands of other banks, credit unions and financing institutions. Despite the weak market in November, Chevrolet Malibu continued its solid performance with total sales up 31% compared with last November. Year to date, Malibu total sales have now exceeded 160,000 cars, up 39 % from the same period last year. With its six-speed transmission and four-cylinder engine combination, the Malibu delivers an EPA-estimated 33 mpg highway -- tops in the industry's mid-car segment. The Malibu Hybrid also offers the lowest- priced hybrid in the segment. GM hybrids continue to build sales momentum. A total of 1,335 hybrid vehicles were delivered in the month. Hybrid sales included: 404 hybrid Chevrolet Tahoe, 190 GMC Yukon and 173 Cadillac Escalade 2-mode SUVs delivered. There were 195 Chevrolet Malibu, 45 Saturn Aura and 328 Vue hybrids sold in November. Hybrids comprised 10 percent of combined Yukon/Tahoe retail sales and 12% of Escalade retail sales in the month. So far in 2008, GM has sold a total of 11,884 hybrids. GM inventories dropped compared with a year ago. In November, only about 862,000 vehicles were in stock, down about 130,000 vehicles (or about 13 percent) compared with last year. There were about 379,000 cars and 483,000 trucks (including crossovers) in inventory at the end of November. Certified Used Vehicles November 2008 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre- Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre- Owned Vehicles, were 33,731 vehicles, down 10% from November 2007. Year-to-date sales are 442,182 vehicles, down 7% from the same period last year. GM Certified Used Vehicles, the industry's top-selling certified brand, posted November sales of 28,607 vehicles, down more than 12 percent from November 2007. Saturn Certified Pre-Owned Vehicles sold 863 vehicles, down 16%. Cadillac Certified Pre-Owned Vehicles sold 3,453 vehicles, up 7%. Saab Certified Pre-Owned Vehicles sold 552 vehicles, up 18%, and HUMMER Certified Pre-Owned Vehicles sold 256 vehicles, up 95%. "November sales for certified GM programs were down overall, as the growing economic uncertainty last month continued to impact consumer confidence and demand for vehicles, both new and used," said Mr. LaNeve. "We're pleased to see the Cadillac, Saab and Hummer CPO programs post solid sales gains from last November as shoppers continue to seek value and peace of mind in this challenging retail environment." GM North America November 2008 Production In November, GM North America produced 249,000 vehicles (109,000 cars and 140,000 trucks). This is down 117,000 vehicles or 32 percent compared with November 2007 when the region produced 366,000 vehicles (134,000 cars and 232,000 trucks). (Production totals include joint venture production of 8,000 vehicles in November 2008 and 22,000 vehicles in November 2007.) The GM North America fourth-quarter production forecast is 835,000 vehicles (380,000 cars and 455,000 trucks) which is down about 20% compared with a year ago. GM North America built 1.042 million vehicles (358,000 cars and 684,000 trucks) in the fourth-quarter of 2007. The initial GM North America first-quarter 2009 production forecast is 600,000 vehicles (235,000 cars and 365,000 trucks) which is down about 32% compared with a year ago. GM North America built 885,000 vehicles (360,000 cars and 525,000 trucks) in the first-quarter of 2008. First quarter 2008 production was reduced nearly 100,000 vehicles due to the strike at American Axle. General Motors United States Deliveries *S/D Curr: 25 November *S/D Prev: 25 2008 2007 % Chg %Chg per Volume S/D Vehicle Total 154,877 263,654 -41.3 -41.3 Car Total 58,786 105,077 -44.1 -44.1 Light Truck Total 94,618 156,196 -39.4 -39.4 Light Vehicle Total 153,404 261,273 -41.3 -41.3 Truck Total 96,091 158,577 -39.4 -39.4 GM Car Deliveries - (United States) November 2008 November 2008 2007 % Chg %Chg per Volume S/D Selling Days (S/D) 25 25 Century 0 0 ***.* ***.* LaCrosse 2,086 3,134 -33.4 -33.4 LaSabre 0 0 ***.* ***.* Lucerne 3,134 6,080 -48.5 -48.5 Park Avenue 0 0 ***.* ***.* Buick Total 5,220 9,214 -43.3 -43.3 CTS 2,902 5,586 -48.0 -48.0 DeVille 0 0 ***.* ***.* DTS 1,287 3,751 -65.7 -65.7 STS 630 1,928 -67.3 -67.3 XLR 60 97 -38.1 -38.1 Cadillac Total 4,879 11,362 -57.1 -57.1 Aveo 3,321 5,185 -35.9 -35.9 Cavalier 0 0 ***.* ***.* Classic 0 0 ***.* ***.* Cobalt 6,319 13,629 -53.6 -53.6 Corvette 1,093 2,438 -55.2 -55.2 Impala 12,851 22,824 -43.7 -43.7 Malibu 9,469 7,210 31.3 31.3 Monte Carlo 2 498 -99.6 -99.6 SSR 0 1 **.* **.* Chevrolet Total 33,055 51,785 -36.2 -36.2 Bonneville 0 0 ***.* ***.* G5 1,083 2,170 -50.1 -50.1 G6 6,040 11,616 -48.0 -48.0 G8 1,133 0 ***.* ***.* Grand Am 0 0 ***.* ***.* Grand Prix 119 5,743 -97.9 -97.9 GTO 0 25 **.* **.* Solstice 325 1,360 -76.1 -76.1 Sunfire 0 0 ***.* ***.* Vibe 2,683 3,128 -14.2 -14.2 Pontiac Total 11,383 24,042 -52.7 -52.7 9-2X 0 0 ***.* ***.* 9-3 606 1,432 -57.7 -57.7 9-5 111 261 -57.5 -57.5 Saab Total 717 1,693 -57.6 -57.6 Astra 1,106 0 ***.* ***.* Aura 2,161 4,158 -48.0 -48.0 ION 0 2,059 **.* **.* Saturn L Series 0 0 ***.* ***.* Sky 265 764 -65.3 -65.3 Saturn Total 3,532 6,981 -49.4 -49.4 GM Car Total 58,786 105,077 -44.1 -44.1 (Calendar Year-to-Date) January - November 2008 2007 %Chg Volume Selling Days (S/D) Century 0 5 **.* LaCrosse 35,422 44,207 -19.9 LaSabre 0 121 **.* Lucerne 50,779 77,101 -34.1 Park Avenue 0 26 **.* Buick Total 86,201 121,460 -29.0 CTS 54,378 50,252 8.2 DeVille 0 71 **.* DTS 28,667 47,231 -39.3 STS 13,883 18,558 -25.2 XLR 1,151 1,622 -29.0 Cadillac Total 98,079 117,734 -16.7 Aveo 53,103 60,705 -12.5 Cavalier 0 57 **.* Classic 0 17 **.* Cobalt 175,259 183,029 -4.2 Corvette 25,647 30,771 -16.7 Impala 244,692 293,328 -16.6 Malibu 160,898 116,140 38.5 Monte Carlo 710 15,380 -95.4 SSR 13 241 -94.6 Chevrolet Total 660,322 699,668 -5.6 Bonneville 0 130 **.* G5 22,975 25,419 -9.6 G6 132,534 132,894 -0.3 G8 13,523 0 ***.* Grand Am 0 99 **.* Grand Prix 8,371 84,123 -90.0 GTO 52 4,184 -98.8 Solstice 10,338 15,493 -33.3 Sunfire 0 39 **.* Vibe 44,485 33,825 31.5 Pontiac Total 232,278 296,206 -21.6 9-2X 3 118 -97.5 9-3 14,483 21,206 -31.7 9-5 2,418 3,974 -39.2 Saab Total 16,904 25,298 -33.2 Astra 10,813 0 ***.* Aura 56,194 54,645 2.8 ION 314 47,197 -99.3 Saturn L Series 0 2 **.* Sky 8,870 10,620 -16.5 Saturn Total 76,191 112,464 -32.3 GM Car Total 1,169,975 1,372,830 -14.8 GM Truck Deliveries - (United States) November 2008 November 2008 2007 % Chg %Chg per Volume S/D Selling Days (S/D) 25 25 Enclave 2,288 3,834 -40.3 -40.3 Rainier 1 51 -98.0 -98.0 Rendezvous 1 11 -90.9 -90.9 Terraza 6 135 -95.6 -95.6 Buick Total 2,296 4,031 -43.0 -43.0 Escalade 1,870 2,525 -25.9 -25.9 Escalade ESV 752 1,202 -37.4 -37.4 Escalade EXT 338 507 -33.3 -33.3 SRX 976 1,445 -32.5 -32.5 Cadillac Total 3,936 5,679 -30.7 -30.7 Astro 0 0 ***.* ***.* C/K Suburban (Chevy) 3,882 6,033 -35.7 -35.7 Chevy C/T Series 9 12 -25.0 -25.0 Chevy W Series 60 197 -69.5 -69.5 Colorado 2,503 5,428 -53.9 -53.9 Equinox 2,570 5,261 -51.1 -51.1 Express Cutaway/G Cut 1,370 1,709 -19.8 -19.8 Express Panel/G Van 5,870 6,657 -11.8 -11.8 Express/G Sportvan 669 1,368 -51.1 -51.1 HHR 3,421 7,179 -52.3 -52.3 Kodiak 4/5 Series 499 861 -42.0 -42.0 Kodiak 6/7/8 Series 93 208 -55.3 -55.3 S/T Blazer 0 0 ***.* ***.* Tahoe 4,149 9,195 -54.9 -54.9 TrailBlazer 2,556 7,794 -67.2 -67.2 Traverse 2,936 0 ***.* ***.* Uplander 584 5,689 -89.7 -89.7 Venture 0 0 ***.* ***.* Avalanche 1,996 4,144 -51.8 -51.8 Silverado-C/K Pickup 29,534 38,122 -22.5 -22.5 Chevrolet Fullsize Pickups 31,530 42,266 -25.4 -25.4 Chevrolet Total 62,701 99,857 -37.2 -37.2 Acadia 2,640 6,395 -58.7 -58.7 Canyon 627 1,476 -57.5 -57.5 Envoy 852 3,035 -71.9 -71.9 GMC C/T Series 82 50 64.0 64.0 GMC W Series 139 294 -52.7 -52.7 Safari (GMC) 0 0 ***.* ***.* Savana Panel/G Classic 562 1,158 -51.5 -51.5 Savana Special/G Cut 155 212 -26.9 -26.9 Savana/Rally 90 191 -52.9 -52.9 Sierra 10,497 13,840 -24.2 -24.2 Topkick 4/5 Series 317 362 -12.4 -12.4 Topkick 6/7/8 Series 274 397 -31.0 -31.0 Yukon 2,251 4,317 -47.9 -47.9 Yukon XL 1,728 2,822 -38.8 -38.8 GMC Total 20,214 34,549 -41.5 -41.5 HUMMER H1 0 3 **.* **.* HUMMER H2 233 958 -75.7 -75.7 HUMMER H3 1,048 3,068 -65.8 -65.8 HUMMER H3T 173 0 ***.* ***.* HUMMER Total 1,454 4,029 -63.9 -63.9 Other-Isuzu F Series 0 0 ***.* ***.* Other-Isuzu H Series 0 0 ***.* ***.* Other-Isuzu N Series 0 0 ***.* ***.* Other-Isuzu Total 0 0 ***.* ***.* Aztek 0 0 ***.* ***.* Montana 0 0 ***.* ***.* Montana SV6 0 30 **.* **.* Torrent 757 1,968 -61.5 -61.5 Pontiac Total 757 1,998 -62.1 -62.1 9-7X 135 310 -56.5 -56.5 Saab Total 135 310 -56.5 -56.5 Outlook 1,221 3,340 -63.4 -63.4 Relay 1 96 -99.0 -99.0 VUE 3,376 4,688 -28.0 -28.0 Saturn Total 4,598 8,124 -43.4 -43.4 GM Truck Total 96,091 158,577 -39.4 -39.4 (Calendar Year-to-Date) January - November 2008 2007 %Chg Volume Selling Days (S/D) Enclave 41,416 24,560 68.6 Rainier 115 4,715 -97.6 Rendezvous 24 15,258 -99.8 Terraza 532 5,398 -90.1 Buick Total 42,087 49,931 -15.7 Escalade 21,145 33,302 -36.5 Escalade ESV 9,828 14,837 -33.8 Escalade EXT 4,117 7,357 -44.0 SRX 14,755 20,060 -26.4 Cadillac Total 49,845 75,556 -34.0 Astro 0 25 **.* C/K Suburban (Chevy) 48,003 76,900 -37.6 Chevy C/T Series 329 253 30.0 Chevy W Series 1,458 2,483 -41.3 Colorado 49,899 70,306 -29.0 Equinox 61,700 81,848 -24.6 Express Cutaway/G Cut 12,314 18,355 -32.9 Express Panel/G Van 55,692 70,132 -20.6 Express/G Sportvan 12,725 15,176 -16.2 HHR 89,184 95,525 -6.6 Kodiak 4/5 Series 6,442 8,834 -27.1 Kodiak 6/7/8 Series 1,425 2,165 -34.2 S/T Blazer 0 7 **.* Tahoe 85,161 134,905 -36.9 TrailBlazer 70,791 122,554 -42.2 Traverse 4,521 0 ***.* Uplander 39,943 65,708 -39.2 Venture 0 25 **.* Avalanche 31,806 50,449 -37.0 Silverado-C/K Pickup 431,725 564,697 -23.5 Chevrolet Fullsize Pickups 463,531 615,146 -24.6 Chevrolet Total 1,003,118 1,380,347 -27.3 Acadia 62,729 65,372 -4.0 Canyon 13,531 19,451 -30.4 Envoy 22,716 44,649 -49.1 GMC C/T Series 511 943 -45.8 GMC W Series 2,368 3,818 -38.0 Safari (GMC) 0 13 **.* Savana Panel/G Classic 9,651 13,759 -29.9 Savana Special/G Cut 10,166 8,083 25.8 Savana/Rally 1,323 1,817 -27.2 Sierra 155,564 188,461 -17.5 Topkick 4/5 Series 7,450 8,448 -11.8 Topkick 6/7/8 Series 3,933 5,543 -29.0 Yukon 34,663 58,266 -40.5 Yukon XL 22,608 41,620 -45.7 GMC Total 347,213 460,243 -24.6 HUMMER H1 17 122 -86.1 HUMMER H2 5,721 11,281 -49.3 HUMMER H3 19,152 39,250 -51.2 HUMMER H3T 425 0 ***.* HUMMER Total 25,315 50,653 -50.0 Other-Isuzu F Series 0 1,116 **.* Other-Isuzu H Series 0 61 **.* Other-Isuzu N Series 0 6,729 **.* Other-Isuzu Total 0 7,906 **.* Aztek 0 25 **.* Montana 0 26 **.* Montana SV6 64 1,331 -95.2 Torrent 18,560 30,223 -38.6 Pontiac Total 18,624 31,605 -41.1 9-7X 3,285 4,665 -29.6 Saab Total 3,285 4,665 -29.6 Outlook 23,986 31,591 -24.1 Relay 160 1,401 -88.6 VUE 75,097 76,439 -1.8 Saturn Total 99,243 109,431 -9.3 GM Truck Total 1,588,730 2,170,337 -26.8 About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Corporation offers products under the Chevrolet brand in India through its wholly owned subsidiary, General Motors India. GM India has 95 sales points and over 110 service centers. 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. PACIFICA: CRISIL Rates Rs 200 Mil. Cash Credit at 'BB+' ------------------------------------------------------- CRISIL has assigned its rating of 'BB+/Stable' to the bank facility of Pacifica (Ahmedabad Projects) Developers Pvt Ltd. Rs 200 Million Cash Credit BB+/Stable (Assigned) The rating reflects the expected impact, on saleability of Pacifica's projects, of the current slowdown in the economy; the rating is underpinned by Pacifica's moderate financial risk profile and exposure to risks relating to project concentration and limited track record. These weaknesses are partially offset by the company's good profitability potential on Project Green Acres. Outlook: Stable CRISIL expects Pacifica's credit profile to remain stable over the medium term, supported by good saleability & customer advances for Project "Green Acres." Successful completion and sale of "Green Acres" project with no material cost and time overruns and prudent funding mix of the upcoming Gokuldham project through internal accruals, customer advances and debt could lead to 'Positive' outlook to the rating. Conversely, any adverse impact on the saleability of the project or aggressive debt funding of upcoming projects leading to deterioration of capital structure and debt protection measures may lead to 'Negative' outlook. About Pacifica Pacifica is part of the Pacifica group's operations in India. The company undertakes residential real estate projects; both its projects, Green Acres and Gokuldham, are in Ahmedabad. Green Acres, located at Prahlad Nagar, West Ahmedabad, is built over a 5.5 acre plot with a built up area of 567,000 square feet (sq ft). The project consists of seven buildings and 320 flats, and is scheduled for completion by March 2009 at a cost of ~ Rs.1 billion. Project Gokuldham, located at Gokuldham on Sanand Road, is to be built over a 21-acre plot with a built up area of 975 000 sq ft. The project is expected to cost more than Rs.1.5 billion, and involve construction of more than 150 villas. Construction is likely to commence by January 2009. SHIRDI INDUSTRIES: CRISIL Rates Rs.230.0 Mil. Cash Credit at 'BB+' ------------------------------------------------------------------ CRISIL has assigned is ratings of 'BB+/Stable/P4' to the bank facilities of Shirdi Industries Ltd (SIL). Rs.230.0 Million Cash Credit BB+/Stable(Assigned) Rs.170.0 Million Working BB+/Stable(Assigned) Capital Demand Loan Rs.950.0 Million Term Loan BB+/Stable(Assigned) Rs.90.0 Million Letter of Credit P4(Assigned) The ratings reflect SIL's weak financial risk profile, large working capital requirements, and exposure to intense competition from imports. These weaknesses are mitigated by the company's established market position, diversified and value-added product profile, better-than-average operating efficiency, proximity to sources of raw materials, and exemption from income tax and excise duty. Outlook: Stable CRISIL believes that SIL will maintain its current market position, and benefit from the growth prospects for the wood panel industry. The outlook may be revised to 'Positive' if the company's capital structure improves substantially. Conversely, the outlook may be revised to 'Negative' if SIL incurs large debt- funded capital expenditure, leading to deterioration in its financial risk profile, or if it faces intense pressure on its operating margins. About SIL Incorporated in 1993, SIL manufactures medium-density fibre (MDF) and particle boards (PB). It began operations by offering foreign trade advisory services. In February 2007, SIL commissioned its plant to manufacture laminates, and plain and laminated MDF and PB at Pantnagar, Uttaranchal. This was a large project, costing Rs.1.33 billion. The company floated an initial public offering (IPO) in 2006 to fund part of the project cost. However, because of under-subscription of shares on account of subdued market conditions, the company withdrew the IPO, and the project was funded through debt. The company is now setting up another plant, at Chennai, for pre-lamination of imported MDF and PB; operations at this plant are likely to commence in March 2009. The company discontinued consultancy and trading activities in 2007-08 (refers to financial year, April 1 to March 31) and 2008-09, respectively, and intends to focus only on manufacturing activities. In 2007- 08, SIL acquired 43 per cent of the equity in its group company Asis Logistics Ltd (ALL). For 2007-08, SIL reported a profit after tax (PAT) of Rs.73 million on net sales of Rs.2105 million, as against a PAT of Rs.75 million on net sales of Rs.822 million in the previous year. TOSHNIWAL ASSOCIATES: CRISIL Rates Rs. 2.5MM Cash Credit at 'B+' ---------------------------------------------------------------- CRISIL has assigned its ratings of 'B+/Stable/P4' to the various bank facilities of Toshniwal Associates Pvt Ltd. Rs. 2.5 Million Cash Credit B+/Stable (Assigned) Rs. 7.6 Million Term Loan B+/Stable (Assigned) Rs. 79.9 Million Packing Credit P4 (Assigned) The ratings reflect Toshniwal Associates' weak financial risk profile, and exposure to risks relating to linkage of raw material prices with the monsoons. These weaknesses are, however, partially offset by the company's healthy growth prospects in the guar gum products industry, and the promoters' established track record in the business. Outlook: Stable CRISIL believes that Toshniwal Associates' sales will continue to grow on the back of steady demand for guar splits and guar gum, and its established relationships with customers. The outlook may be revised to 'Positive' if the company's operations at its expanded capacities stabilise, and its capital structure improves. Conversely, the outlook may be revised to 'Negative' if the company's debt protection indicators deteriorate on account of substantial increase in debt, or if the government announces adverse changes in policies. About Toshniwal Associates Toshniwal Associates was incorporated in 1995 and commenced operations in 1998. In June 2002, Mr. Pawan Jain took over the company from its previous promoters. The company makes guar gum powder out of guar splits. Guar gum meals are a by-product in the process, and are used as cattle feed. Guar gum is used as a binding and thickening agent in food products, and is also used in mining and petrochemicals. The company acquired Lalit Converters in September 2008 for Rs.10 million. Toshniwal Associates' operations are ISO:9001 certified; it has also applied for Hazard Analysis and Critical Control Point (HACCP) certification, which companies in the food products industry need to obtain. Toshniwal Associates reported a profit after tax (PAT) of Rs. 0.44 million on sales of Rs. 337.6 million in 2007-08 (refers to financial year, April 1 to March 31), up from a PAT of Rs.0.33 million on net sales of 271.1 million in 2006-07. ================= I N D O N E S I A ================= * INDONESIA: ADB Grants US$350 Million Loan ------------------------------------------- The Asian Development Bank (ADB) has approved a US$350 million program loan to Indonesia to improve financial and economic management at all levels of government. In 1999, the Government of Indonesia began major decentralization reform which has created significant responsibilities for provincial, district, and city governments, ADB said in a statement. Following further major reforms in 2001, Indonesia became one of the most decentralized countries in the world, with its regional governments managing around 40% of total government expenditure. One of the benefits of decentralization is that residents in the regions gain more representation and have access to their local representatives. Regional governments then become more accountable and efficient in their operations. According to ADB, regional governments now deliver services in public works, health, education, culture, communications, industry and trade, capital investment, environment, land, cooperatives, labor, and many other sectors. The reforms have been radical and have occurred rapidly, ADB added. The Second Local Government and Finance and Governance Reform Program will continue ADB's long-term support for effective decentralization and will assist to broaden the processes of regional autonomy and financing, which in turn will achieve better social and physical services and opportunities arising from a more robust economy. "This program will generate significant benefits for the financing and delivery of local services, and in the development of badly- needed capacity. ADB believes that in pursuing these reforms, Indonesia is creating a solid base for growth," said Arjun Thapan, Director General of ADB's Southeast Asia Department. Based in Manila, Asian Development Bank (ADB), is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members � 48 from the region. In 2007, it approved US$10.1 billion of loans, US$673 million of grant projects, and technical assistance amounting to US$243 million. ========= J A P A N ========= DELPHI CORP: Court OKs Creditors' Retention of Moelis & Co. ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York has approved, on a final basis, the retention of the Official Committee of Unsecured Creditors in Delphi's cases of Moelis & Company LLC, as co-investment banker, in cooperation with Jefferies & Company, Inc., effective nunc pro tunc to July 1, 2008. The Creditors Committee tapped the services of Moelis after professionals of Jefferies who performed investment banking services to the Committee moved to Moelis. According to the transcript of the 31st Omnibus Hearing, Michael Riela, Esq., at Warner Stevens, LLP, informed Judge Drain that Jefferies will continue to be retained in the case, but there was going to be a sharing of the fees. Mr. Riela also assured the Court that the Debtors' estates would not incur additional expenses as a result of the retention of two investment bankers. Committee Chairperson David Daigle said, "At this critical juncture, the Committee needs to be fully engaged in assessing the Debtors' reorganization alternatives without the delay or undue cost that would be incurred by losing the knowledge and expertise the Moelis professionals have. Losing access to these professionals could hinder the Committee's ability to effectively respond to new developments and necessary modifications to the Plan", Mr. Daigle asserts. The Moelis professionals primarily responsible for providing services to the Committee are (i) William Q. Derrough, (ii) Isaac Lee, and (iii) David Groban. The Committee selected Moelis as its investment banker for the purpose of providing assistance and advice, in cooperation with Jefferies, with respect to any potential strategy for restructuring the Debtors' outstanding indebtedness, labor costs or capital structure, whether pursuant to a reorganization plan, a sale of assets pursuant to Section 363 of the Bankruptcy Code, a liquidation or otherwise, Mr. Daigle relates. The Committee seeks to continue to use the services of the Jefferies as its co-investment banker. Jefferies will be primarily responsible for services related to asset sales, analysis of debtor-in-possession financing and labor, pension and OPEB issues. Jefferies and Moelis have entered into an agreement whereby they would allocate between themselves the fees earned from the services rendered to the Committee, Mr. Daigle explains. Moelis will be entitled to receive from the Debtors' estates, as compensation for its services: (1) US$131,250 monthly fee; and (ii) and a transaction fee of 1/3 of (i) 0.50% of total consideration greater than US$0.50 and up to US$0.75 per US$1 of allowed unsecured claim and (ii) 0.75% of Total Consideration, as defined in the Engagement letter, greater than US$0.75 per US$1 of allowed unsecured claim. The transaction fee will not be less than US$670,000 or greater than US$3,330,000, however, Moelis has reserved the right to request modification of the cap. For purposes of clarification, the engagement Letter defines Total Consideration as "[T]he total aggregate consideration paid by the Debtors on account of allowed unsecured claims against the Debtors pursuant to a plan or plans of reorganization in the Cases, including any amounts in escrow, but excluding any unsecured claims of, and consideration paid by the Debtors on account of claims of, the Pension Benefit Guaranty Corporation or any assignee of the PBGC. 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. 152; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Wins Court OK for GM Liquidity Enhancement Deals ------------------------------------------------------------- Delphi Corp. and its affiliates obtained approval from the U.S. Bankruptcy Court for the Southern District of New York to enhance their liquidity through June 30, 2009, by entering into two agreements with General Motors Corp: -- The Debtors obtained permission to amend and extend, through June 30, 2009, their current arrangement with GM pursuant to which GM has agreed to provide up to US$300 million of liquidity enhancement; and -- The Debtors obtained authority to enter into a new agreement with GM whereby GM would provide an additional aggregate US$300 million during the second quarter of 2009 through a temporary acceleration of its accounts payable to the Debtors. Delphi did not receive objections to the GM deals but asked the Bankruptcy Court to defer for seven days, to Dec. 1, 2008, the hearing on their proposed deals with General Motors Corp., to permit further discussions by the parties on the proposed changes to its US$4.35-billion DIP facility. Delphi has entered into an accommodation agreement with JPMorgan Chase Bank, N.A., as the administrative agent under the DIP facility, and majority of the lenders under tranches A and B of the facility. The Accommodation Agreement, which grants Delphi access to DIP financing until June 30, 2009, faced opposition by the tranche C lenders, but nonetheless, was subsequently approved by the Court. As reported by the Troubled Company Reporter on Nov. 18, the two agreements will afford the Debtors additional liquidity of up to US$600 million through the end of the second quarter of 2009. This will also provide the Debtors the time to seek sufficient emergence funding capital to allow them to emerge from chapter 11 as soon as practicable. John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, relates that through the Second Amendment Agreement and the Partial Temporary Accelerated Payment Agreement, GM would provide additional liquidity to the Debtors through the second quarter of 2009, during the period covered by the accommodation agreement with certain of the DIP Lenders. The Debtors said the liquidity provided by the agreements with GM should help facilitate their plan modifications and emergence strategy while addressing the concerns of Delphi's customers and suppliers. More GM Support to Delphi According to Mr. Butler, the relief sought by Delphi reflects GM's further support for the Debtors' reorganization efforts. GM has already made significant and substantial contributions to the Debtors' reorganization efforts. On September 26, 2008, the Debtors received the authority to implement the Amended GSA and the Amended MRA, which agreements became effective on September 29, 2008. The Amended GSA and Amended MRA, among other things, produced US$4.6 billion in incremental net contributions to Delphi from GM (resulting in an expected net contribution from GM in the approximate amount of US$10.6 billion), pulled forward GM's financial obligations under the global settlement agreement and master restructuring agreement approved as part of the Plan to the effective date of the Amended GSA and Amended MRA, made all of GM's incremental financial contributions in the Amended GSA and Amended MRA immediately and unconditionally effective on the effective date of the Amended GSA and Amended MRA, eliminated substantially all of GM's termination rights, and eliminated substantial conditional aspects of the Original GSA and Original MRA. The agreements became effective on September 29, 2008, and the Debtors and GM executed the first step of the section 414(l) transfer on that date, transferring approximately US$2.1 billion of the Debtors' net unfunded hourly pension liabilities to GM's pension plan. Delphi Couldn't Find Exit Financing Amid Worst Bear Market Following the implementation of the Amended GSA and the Amended MRA, the Debtors continued to take steps toward emergence from chapter 11. On October 3, 2008, the Debtors filed the Plan Modification Approval Motion which included the Debtors' revised emergence business plan and enterprise valuation. That same day, the United States House of Representatives approved the federal bailout plan, now known as the Troubled Asset Relief Program or "TARP." However, on the following Monday, and for much of the rest of the month of October, the global credit markets seized up and experienced one of the five worst bear markets in history. 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, Mr. Butler explains. "Nevertheless, assuming that this Court approves this Motion and the Accommodation Motion, the Debtors will continue to work with their stakeholders in an effort to emerge from chapter 11 as quickly as practicable despite the difficult economic environment," Mr. Butler avers. Amended GM Arrangement The Amended GM Arrangement, as modified by the Second Amendment Agreement, functions as an adjunct to the Debtors' US$4-billion DIP financing facility, effectively providing Delphi with US$300 million in additional unsecured, subordinated advancements from GM, thereby continuing a definite and reliable source of liquidity during an extended period of uncertainty in the capital markets generally and the automotive industry in particular. Under the terms of the Second Amendment Agreement, GM has agreed, subject to this Court's approval, to make available to the Debtors up to US$300 million through the maturity date of the Second Amendment Agreement, subject to certain modified borrowing mechanics and provided that certain conditions are met. The maturity date for the Second Amendment Agreement will be the earliest of: (i) June 30, 2009, (ii) the date on which Delphi or any guarantor of the GM Arrangement files any motion or other pleading seeking to amend the Plan or Disclosure Statement filed by the Debtors on October 3, 2008 in a manner not reasonably acceptable to GM, (iii) the DIP Termination Date, (iv) on or after January 1, 2009, the expiration or termination of the Accommodation Agreement or the Accommodation Period, and (v) the occurrence of the effective date of the Plan. In addition, certain modifications were made to the Amended GM Arrangement that protects GM in the event the Accommodation Agreement is modified in a manner adverse to GM. In such circumstance, to the extent that Delphi seeks continued access to the Second Amended GM Arrangement, GM would have approval rights with respect to such modifications to the Accommodation Agreement. Other proposed modifications to the Amended GM Arrangement are largely technical and conforming changes. Effectiveness of the Second Amendment Agreement is conditioned on, among other things, (i) the Debtors having no Automatic Accommodation Termination Default and no Accommodation Default and (ii) entry of a final, non-appealable order by the Court approving the Accommodation Agreement and the Second Amendment Agreement on or prior to December 31, 2008. Upon the effectiveness of the Second Amendment Agreement, the terms and conditions of the Amended GM Arrangement will remain in full force and effect, including the provisions that GM and its relevant Affiliates will have (a) allowed claims with administrative expense priority pursuant to Section 503(b)(1) of the Bankruptcy Code against Delphi and the GM Guarantors under and as defined in the DIP Credit Agreement for all Obligations owing to GM or any applicable GM Affiliates and (b) all other rights under the Amended GM Arrangement and the Second Amendment Agreement, including, without limitation, the ability to exercise the right to set off and apply, subject to the terms of the Amended GM Arrangement and the Second Amendment Agreement, any indebtedness or liabilities owing by GM or the GM Affiliates to or for the credit or the account of Delphi or the GM Guarantors against any and all GM Arrangement Obligations of Delphi or the GM Guarantors without the need to seek additional modification of the automatic stay imposed pursuant to Section 362 of the Bankruptcy Code and without further order of the Court. Pursuant to a side letter between Delphi and GM, GM has agreed that prior to the earlier of (i) the occurrence of the DIP Termination Date, (ii) the effectiveness of the Debtors' plan of reorganization, or (iii) the receipt of DIP Agent consent, GM will not assert or exercise against any of the GM GSA Claims any setoff of any amounts payable by GM or any of its Affiliates to Delphi or any of its affiliates. The GM GSA Claims are the First Net Liability Transfer Claim, the Second Net Liability Transfer Claim, and the GM Unsecured Claim. The Side Letter does not prejudice other parties' rights to contest GM's setoff rights if (a) the Side Letter does not become effective or (b) one of the events set forth in clauses (i)-(iii) above has occurred. The Side Letter will become effective on the date when all of the conditions precedent set forth in section 3 of the Second Amendment Agreement have been satisfied or waived. Copies of the New GM Agreements are available at no charge at http://bankrupt.com/misc/Delphi_GM_DealsNov08.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. 152; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) FORD MOTOR: Car Sales Drop to 118,818; Down 30% from 2007 --------------------------------------------------------- Ford, Lincoln, and Mercury outpaced industry-wide November sales, thanks largely to F-Series truck sales, and grew its retail and total market share for the second straight month. Ford, Lincoln, and Mercury dealers reported total sales of 118,818 in November, down 30% versus a year ago, while industry-wide auto sales in November were down an estimated 35% as the weakening economy continues to take a toll on consumer confidence and spending. "The economy continues to weaken and auto sales reflect this reality," said Jim Farley, Ford Group Vice President of Marketing and Communications. "At Ford, we are focused on executing our plan. In 2009 and 2010, we'll launch an unprecedented number of new vehicles, and every product will offer consumers the best or among the best fuel economy in its class." In recent weeks, Ford Motor has received significant endorsements from independent third parties for its quality and safety. Ford Motor's initial vehicle quality is now on par with Toyota and Honda, and Ford Motor now has more 5-star vehicles and Insurance Institute for Highway Safety (IIHS) "Top Safety Picks" than any other company in the industry. November marked the official introduction of the all-new F-150. F- Series sales totaled 37,911 including nearly 5,000 all-new 2009 model F-150s. Ford Motor's F-Series has been America's No. 1- selling truck for 31 years in a row, and the new F-150 is designed and engineered to further raise the bar in the light- duty pickup market. The 2009 model Ford F-150 has class-leading capability with 11,300 pounds towing and 3,030 pounds payload and unsurpassed fuel economy of 21 mpg highway with the SFE package, which is available on F-150's highest-volume XL and XLT series. The new 2009 F-150 also earned the IIHS's "Top Safety Pick" award, the Texas Auto Writers Association's "Truck of Texas" top honor and is projected to have the best residual value of full-size light-duty pickups according to the Automotive Leasing Guide. North American Production The company plans to produce 430,000 vehicles in the first quarter of 2009. During the first quarter of 2008, the company produced 692,000 vehicles. The fourth quarter 2008 production plan is unchanged from the previously announced plan of 430,000 vehicles. "We believe the economy will continue to weaken in 2009," said Mr. Farley. "Our near-term production plan reflects this view, as we continue to align capacity with customer demand." FORD MOTOR COMPANY NOVEMBER 2008 U.S. SALES November % Year-To-Date % 2008 2007 Change 2008 2007 Change ---- ---- ------ ---- ---- ------ Sales By Brand Ford 103,055 147,310 -30.0 1,571,543 1,927,596 -18.5 Lincoln 8,019 8,744 -8.3 98,242 121,422 -19.1 Mercury 7,744 13,204 -41.4 111,375 155,791 -28.5 ----- ------ ------ ------- Total Ford, Lincoln and Mercury 118,818 169,258 -29.8 1,781,160 2,204,809 -19.2 Volvo 4,404 8,227 -46.5 68,149 96,872 -29.7 ----- ----- ------ ------ Total Ford Motor Company 123,222 177,485 -30.6 1,849,309 2,301,681 -19.7 Ford, Lincoln And Mercury Sales By Type Cars 37,272 54,439 -31.5 628,878 698,252 -9.9 Crossover Utility Vehicles 22,016 33,271 -33.8 340,471 372,747 -8.7 Sport Utility Vehicles 10,586 17,575 -39.8 148,084 253,389 -41.6 Trucks and Vans 48,944 63,973 -23.5 663,727 880,421 -24.6 ------ ------ ------- ------- Total Trucks 81,546 114,819 -29.0 1,152,282 1,506,557 -23.5 ------ ------- --------- --------- Total Vehicles 118,818 169,258 -29.8 1,781,160 2,204,809 -19.2 FORD BRAND NOVEMBER 2008 U.S. SALES November % Year-To-Date % 2008 2007 Change 2008 2007 Change ---- ---- ------ ---- ---- ------ Crown Victoria 2,934 5,170 -43.2 45,550 56,456 -19.3 Taurus 3,040 3,895 -22.0 49,207 61,770 -20.3 Fusion 8,914 12,278 -27.4 137,295 136,007 0.9 Focus 8,194 13,213 -38.0 184,152 159,190 15.7 Mustang 3,667 7,352 -50.1 87,224 126,311 -30.9 GT 0 0 NA 0 231 -100.0 - - - --- Ford Cars 26,749 41,908 -36.2 503,428 539,965 -6.8 Flex 2,203 0 NA 11,772 0 NA Edge 5,080 12,594 -59.7 104,861 116,403 -9.9 Escape 10,019 12,383 -19.1 145,577 152,294 -4.4 Taurus X 1,234 2,728 -54.8 22,141 37,343 -40.7 ----- ----- ------ ------ Ford Crossover Utility Vehicles 18,536 27,705 -33.1 284,351 306,040 -7.1 Expedition 4,371 5,627 -22.3 51,290 82,771 -38.0 Explorer 4,763 8,609 -44.7 73,093 126,930 -42.4 ----- ----- ------ ------- Ford Sport Utility Vehicles 9,134 14,236 -35.8 124,383 209,701 -40.7 F-Series 37,911 46,568 -18.6 473,933 635,520 -25.4 Ranger 3,311 4,938 -32.9 62,017 67,147 -7.6 Econoline/ Club Wagon 6,915 11,100 -37.7 116,763 153,876 -24.1 Freestar 0 0 NA 0 2,390 -100.0 Low Cab Forward 34 151 -77.5 809 2,573 -68.6 Heavy Trucks 465 704 -33.9 5,859 10,384 -43.6 --- --- ----- ------ Ford Trucks and Vans 48,636 63,461 -23.4 659,381 871,890 -24.4 ------ ------ ------- ------- Ford Brand 103,055 147,310 -30.0 1,571,543 1,927,596 -18.5 LINCOLN BRAND NOVEMBER 2008 U.S. SALES November % Year-To-Date % 2008 2007 Change 2008 2007 Change ---- ---- ------ ---- ---- ------ MKS 1,958 0 NA 10,882 0 NA MKZ 1,805 2,712 -33.4 28,028 31,190 -10.1 Town Car 1,454 488 198.0 14,285 26,545 -46.2 MKX 1,526 3,360 -54.6 26,962 34,097 -20.9 Navigator 968 1,672 -42.1 13,739 21,759 -36.9 Mark LT 308 512 -39.8 4,346 7,831 -44.5 --- --- ----- ----- Lincoln Brand 8,019 8,744 -8.3 98,242 121,422 -19.1 MERCURY BRAND NOVEMBER 2008 U.S. SALES November % Year-To-Date % 2008 2007 Change 2008 2007 Change ---- ---- ------ ---- ---- ------ Grand Marquis 2,437 4,702 -48.2 27,495 46,577 -41.0 Sable 1,230 1,180 4.2 15,586 19,663 -20.7 Milan 1,639 3,449 -52.5 29,174 34,312 -15.0 Mariner 1,954 2,206 -11.4 29,158 32,610 -10.6 Mountaineer 484 1,667 -71.0 9,962 21,929 -54.6 Monterey 0 0 NA 0 700 -100.0 - - - --- Mercury Brand 7,744 13,204 -41.4 111,375 155,791 -28.5 VOLVO BRAND NOVEMBER 2008 U.S. SALES November % Year-To-Date % 2008 2007 Change 2008 2007 Change ---- ---- ------ ---- ---- ------ S40 622 1,239 -49.8 9,260 16,997 -45.5 V50 166 239 -30.5 1,723 2,665 -35.3 S60 431 1,575 -72.6 8,700 17,043 -49.0 S80 844 764 10.5 10,079 11,614 -13.2 V70 191 326 -41.4 3,003 3,428 -12.4 XC70 504 1,153 -56.3 8,708 11,179 -22.1 XC90 1,145 2,244 -49.0 17,338 27,993 -38.1 C70 216 298 -27.5 5,358 4,220 27.0 C30 285 389 -26.7 3,980 1,733 129.7 --- --- ----- ----- Volvo Brand 4,404 8,227 -46.5 68,149 96,872 -29.7 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-'. FORD MOTOR: Sufficient Liquidity Cues Moody's to Keep Caa1 Ratings ------------------------------------------------------------------ Moody's Investors Service affirmed the Caa1 Corporate Family and Probability of Default ratings of Ford Motor Company. The company's Speculative Grade Liquidity rating is unchanged at SGL-3, and the company's rating outlook remains negative. The affirmation reflects Moody's view that Ford's current liquidity position, which consisted of US$18.9 billion of cash and US$10.7 billion of committed credit facilities at Sept. 30, should be sufficient to cover the company's cash requirements during the coming twelve months. Moody's noted, however, that Ford continues to face considerable operating, competitive and financial challenges that contribute to the negative outlook and which could result in pressure on the ratings. These challenges include a potential decline in US automotive shipments below the 12.5 million unit level underlying Ford's operating plan, greater-than anticipated erosion in the important European markets, or delays in achieving planned cost reductions. Moody's also notes that Ford has submitted a proposal to receive a US$9 billion loan commitment from the US government that might be drawn if market conditions are more difficult than anticipated. While the provision of such a loan would likely strengthen the company's liquidity profile, Moody's would assess the degree to which the granting of security for such government loans or the other terms and conditions which might be necessary to obtain such loans would have any adverse implications for existing rated obligations. The last rating action on Ford was a downgrade of the company's Corporate Family Rating to Caa1 from B3 on Nov. 7, 2008. Ford Motor Company, headquartered in Dearborn, Michigan, is a leading global automotive manufacturer. ========= K O R E A ========= BALLY TOTAL: Gets Access to Cash Collateral to Fund Ch. 22 Case --------------------------------------------------------------- Bankruptcy Law360 says the U.S. Bankruptcy Court for the Southern District of New York reportedly gave Bally Total Fitness Holding Inc. and its debtor-affiliates permission to pay employees and access cash collateral securing their obligations to their prepetition lenders -- as talks on a possible sale of the company moved forward. Bankruptcy Law360 says Judge Stuart Bernstein's order will last at least through a hearing scheduled for December 9, 2008. The Debtors are party to a credit agreement, dated October 1, 2007, with Morgan Stanley Senior Funding, Inc., as administrative collateral agent, Wells Fargo Foothill, LLC, as revolving credit agent, and the CIT Group/Business Credit, Inc., as revolving syndication agent, and other senior secured lenders party to the Credit Agreement, which provides for financing of up to US$292,000,000, consisting of US$50,000,000 in a senior secured revolving credit facility, with a US$40,000,000 sublimit for letters of credit and a six-year US$242,000,000 senior secured term loan facility. The proceeds from the Term Loan and the Revolver Facility were used to refinance the amounts outstanding under the Company's debtor-in-possession credit agreement from the Prior Bankruptcy Cases and to provide additional working capital. Bally's obligations under the Credit Agreement are guaranteed by most of Bally's domestic subsidiaries. Pursuant to a Guarantee and Collateral Agreement, dated as of October 1, 2007, between Bally and the Agent, obligations under the Credit Agreement are secured by first priority liens and security interests on certain assets and property of the Debtors, including without limitation, accounts, deposit accounts, chattel paper, commercial tort claims, contracts, documents, equipment, general intangibles, instruments, intellectual property, inventory, investment property, all pledged securities, receivables, goods, and books and records and the proceeds thereof. The Prepetition Collateral includes cash collateral of the Agent and the Senior Secured Lenders within the meaning of Section 363(a) of the Bankruptcy Code. As of the Petition Date, the Debtors had approximately US$17,000,000 of cash on hand which comprises Cash Collateral. In addition, the Debtors forecast receipt of US$3,500,000 of additional cash in the next 45 days, which comprises proceeds of the Senior Secured Lenders' collateral. Michael W. Sheehan, chief executive officer of Bally Total Fitness Holding Corporation, said the Debtors have an immediate need for the use of cash collateral to sustain their businesses as a going concern and effect a successful reorganization, including: * the continued operation of their businesses; * the maintenance of business relationships with vendors, suppliers and customers; and * the payment to employees and satisfaction of other working capital and operational needs. To successfully navigate through their Chapter 11 cases, the Debtors need to maintain sufficient liquidity to support the continued ordinary course business operations, and immediate access to Cash Collateral will enable the Debtors to demonstrate to their vendors, suppliers, customers and employees that they have sufficient capital to ensure ongoing operations. The Debtors have proposed to grant their Prepetition Secured Creditors adequate protection with respect to any diminution in the value of the Senior Secured Lenders interests in the Prepetition Collateral. The Debtors' use of Cash Collateral will be governed by a cash collateral budget, and will be used mainly to preserve and maintain the value of their assets. The Budget shows the Debtors' cash flow forecasts for the next 13 weeks, a copy of which is available for free at: http://bankrupt.com/misc/BallyCashCollBudget.pdf The Debtors' proposed counsel, Kenneth H. Eckstein, Esq., Kramer Levin Naftalis & Frankel LLP, in New York, has said the Debtors discussed the proposed Interim Order with the prepetition secured creditors. Thus, the Debtors believe that the Prepetition Secured Creditors are agreeable to the use of the Cash Collateral, pursuant to terms and conditions outlined in the proposed Interim Order. According to Mr. Eckstein, the Interim Order imposes conditions and restrictions on the Debtors' use of Cash Collateral. It also grants relief and adequate protection for the benefit of the Prepetition Secured Creditors. Specifically, use of Cash Collateral will be governed by the Budget and used to preserve and maintain the value of the Debtors' assets. In addition, the Cash Collateral may be used up to amounts not exceeding 115% of the Budget on a cumulative, aggregate rolling basis, measured weekly at the close of business on Friday of each week. The Debtors will deliver weekly Budget reconciliation statements to the Prepetition Secured Creditors. The use of the Cash Collateral is conditioned on the granting of adequate protection, and will be subject to the rights of the Prepetition Secured Creditors to seek further adequate protection. Mr. Eckstein said, as adequate protection for any diminution in the value of the Prepetition Secured Creditors' interest in the Prepetition Collateral that may result from the use of the Cash Collateral: (1) The Debtors will make a US$300,000 monthly interest payment to the Agent, for the benefit of the lenders under the Revolver Facility; (2) The Debtors will pay the Agent's reasonable and documented expenses, not to exceed US$100,000 monthly, for professional fees in connection with monitoring the use of Cash Collateral; (3) The Senior Secured Lenders will receive first priority perfected replacement liens on all of the Debtors' rights in property acquired postpetition, that are of the same type as the Prepetition Collateral and the Encumbered Leases, in the same relative priority as the Prepetition Liens; (4) The Senior Secured Noteholders will receive second priority perfected replacement liens on the Debtors' rights in the Postpetition Collateral; (5) Senior Secured Lenders will have first priority perfected liens on the Debtors' rights in the Unencumbered Leases in the same relative priority as the Prepetition Liens; and (6) The Senior Secured Noteholders will have second priority perfected liens on the Unencumbered Leases. The Debtors preserve their rights to pledge the Unencumbered Assets to a lender providing debtor-in-possession financing, with liens superior to the First Priority Real Estate Liens and the Second Priority Real Estate Liens. The Debtors maintain that the proposed Interim Order is without prejudice to the rights of any party-in-interest. A full-text copy of the proposed Interim Cash Collateral Order is available for free at http://bankrupt.com/misc/BallyInterimCashCollOrd.pdf About Bally Total Fitness Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally Total and its affiliates filed for Chapter 11 protection on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after obtaining requisite number of votes in favor of their pre- packaged chapter 11 plan. Joseph Furst, III, Esq. at Latham & Watkins, L.L.P. represents the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had US$408,546,205 in total assets and US$1,825,941,54627 in total liabilities. The Debtors filed their Joint Prepackaged Plan & Disclosure Statement on July 31, 2007. The Court confirmed the Plan in Sept. 2007. The Plan was declared effective Oct. 1, 2007. Bally Total Fitness Holding Corp. and its debtor-affiliates and subsidiaries again filed voluntary petitions under Chapter 11 on Dec. 3, 2008 (Bankr. S. D. N. Y., Lead Case No. 08-14818). Their counsel is Kenneth H. Eckstein, Esq. at Kramer Levin Naftalis & Frankel LLP, in New York. As of September 30, 2008, the Company (including non-debtor affiliates) had consolidated assets totaling approximately US$1.376 billion and recorded consolidated liabilities totaling approximately US$1.538 billion. (Bally Bankruptcy News, Issue No. 17; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). HYUNDAI MOTOR: Cuts Production at Overseas Plants ------------------------------------------------- Hyundai Motor Company is cutting production in most of its plants overseas due to falling sales as a global recession has hit auto demand in the world, Reuters reports. "We entered reduction in output of all overseas lines except the new Czech Republic factory," Reuters quoted Hyundai spokesman Jake Jang as saying. According to english.chosun, Hyundai said the situation in foreign markets was "very serious." Due to plummeting sales of the Sonata sedan in China, the operation rate of the production line at the Chinese plant has dropped to 16 percent, english.chosun says citing Hyundai. Hyundai, Reuters notes, has this month stopped overtime work at all local production lines except one for compact sedans such as the Elantra. As reported by the Troubled Company Reporter-Asia Pacific on November 5, 2008, the Associated Press said Hyundai volumes fell across all of its models, including its top-selling sedans. Sales of its Sonata car slumped 16.5 percent to 7,943, while Accent sales fell at a similar rate. The AP said sales of the company's sport utility vehicles fell even more sharply. Its best-selling SUV, the Santa Fe, tumbled 36.1 percent to 3,794, while sales of the Tucson plunged by two- thirds to 988. According to english.chosun, Hyundai has five plants abroad: one in China which can produce up to 600,000 cars, one in the Czech Republic with the capacity to produce 300,000 cars, one in India, where up to 600,000 cars are produced, and one each in Turkey and the United States, with 100,000 and 300,000 production capacity respectively. About Hyundai Motor Headquartered in Seoul, South Korea, Hyundai Motor Company -- http://www.hyundai-motor.com/-- has been selling cars in the U.S. since 1986, but it only started selling its heavy trucks stateside in 1998. Hyundai produces 14 models of cars, SUVs, and minivans, as well as trucks, buses, and other commercial vehicles. The company reestablished itself as South Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors (since reduced to about 43%). Hyundai's models for the North American market include the Accent and Sonata; models sold elsewhere include the GRD and Equus. The company also manufactures machine tools for factory automation and material- handling equipment. The Troubled Company Reporter-Asia Pacific reported that the Hyundai Automotive Group is facing its deepest crisis since chairman Chung Mong-koo took over in 1999, with problems like the steep drop of the United States dollar, high oil prices and union demands aggravated by a sweeping criminal investigation regarding the carmaker's alleged creation of slush funds that were used by at least two lobbyists to bribe government officials for business favors, including having KRW55 billion of Hyundai's bad debts written off. Chairman Chung was indicted early in May 2006 for fraud charges. Some of the group's official business has been on hold since the probe on the slush fund started and several top executives were summoned for questioning. On Feb. 5, 2007, a South Korean court handed down the sentence to Mr. Chung for illegally raising US$110 million in slush funds and bribing government officials. Mr. Chung was released on bond and continues to run the auto conglomerate. In May 2008, Yonhap News reported that a group of the company's shareholders filed a civil case against Mr. Chung to claim damages for heavy losses allegedly suffered through his mismanagement and other corporate shenanigans. According to the report, the shareholders, led by a civic group called Solidarity for Economic Reform, filed the lawsuit with the Seoul Central District Court, asking Mr. Chung to pay KRW563 billion (US$537 million) in damages to Hyundai Motor. The lawsuit came a day after prosecutors again demanded a six- year jail term for Mr. Chung for embezzlement and breach of trust, Yonhap said. KOOKMIN BANK: Mulls Job Cuts Through Voluntary Retirement Scheme ---------------------------------------------------------------- Yonhap News Agency reported that Kookmin Bank is planning to reduce its headcount through a voluntary retirement scheme. "We are considering implementing a voluntary retirement program, but no specifics have been decided yet," Yonhap quoted an official at Kookmin Bank as saying. According to the report, Kookmin's move would mark the first early retirement plan among local lenders in the wake of the global credit crunch triggered by the collapse of Lehman Brothers Holdings Inc. Seoul-based Kookmin Bank -- http://inf.kbstar.com/-- provides various commercial banking services, such as deposits, credit cards, trust funds, foreign exchange transactions, and corporate finance. The bank also offers Internet banking services. The Troubled Company Reporter - Asia Pacific reported on May 8, 2007, that Moody's Investors Service, as part of the application of its refined joint default analysis and updated bank financial strength rating methodologies, revised Kookmin Bank's ratings: * BFSR is changed to C from D+ * Global Local Currency Deposit Ratings assigned are Aa3/Prime-1 * Foreign Currency Deposit Ratings are unchanged at A3/Prime-2 * Foreign Currency Debt Rating for senior obligations is changed to A1 from A3 and for subordinated obligations to A1 from Baa1 * Foreign Currency Short Term Debt Rating is unchanged at Prime-1 All the ratings have a stable outlook except for the Foreign Currency Deposit Ratings, which carry a positive outlook. KOOKMIN BANK: To Sell KRW500 Bil. New Shares to Parent ------------------------------------------------------ Kookmin Bank will sell KRW500 billion(US$342 million) worth of new shares to its parent KB Financial Group to shore up its capital base, Kim Yeon-hee of Reuters reports. According to the report, KB Financial said it will issue the same amount of bonds to absorb the new shares this month. "With the capital increase, Kookmin Bank is expected to raise its BIS capital ratio to 11.06 percent from the current 10.74 percent," Reuters cited KB Financial as saying. Kookmin Bank, Reuters notes, represents 94 percent of KB Financial's assets. Seoul-based Kookmin Bank -- http://inf.kbstar.com/-- provides various commercial banking services, such as deposits, credit cards, trust funds, foreign exchange transactions, and corporate finance. The bank also offers Internet banking services. The Troubled Company Reporter - Asia Pacific reported on May 8, 2007, that Moody's Investors Service, as part of the application of its refined joint default analysis and updated bank financial strength rating methodologies, revised Kookmin Bank's ratings: * BFSR is changed to C from D+ * Global Local Currency Deposit Ratings assigned are Aa3/Prime-1 * Foreign Currency Deposit Ratings are unchanged at A3/Prime-2 * Foreign Currency Debt Rating for senior obligations is changed to A1 from A3 and for subordinated obligations to A1 from Baa1 * Foreign Currency Short Term Debt Rating is unchanged at Prime-1 All the ratings have a stable outlook except for the Foreign Currency Deposit Ratings, which carry a positive outlook. =============== M A L A Y S I A =============== OCI BERHAD: Sets Annual General Meeting on December 22 ------------------------------------------------------ OCI Berhad will have its 25th Annual General Meeting on Dec. 22, 2008, at 10:00 a.m. The meeting will be held at Concord Hotel Shah Alam, No. 3 Jalan Tengku Ampuan Zabedah C9/C, 40100 Shah Alam, in Selangor Darul Ehsan. At the meeting, shareholders will be asked to: 1. receive the audited accounts for the year ended June 30, 2008, and the Reports of the Directors and Auditors. 2. approve the Directors' fees 3. re-elect Mr. Wijoto Tjiptodihardjo who retires in accordance with Article 103 of the Company's Articles of Association. 4. re-elect Mr. Lau Fook Meng who retires in accordance with Article 103 of the Company's Articles of Association. 5. re-appoint Messrs. Ernst & Young as Auditors and to authorized the Directors to fix their remuneration. OCI Berhad manufactures adhesives used in the production of shoes for the footwear, toy making, building and construction, automotive, furniture and packaging industries. OCI manufactures and markets a range of sealants and adhesives for various consumer and industrial purposes in 70 countries around the world. On January 24, 2006, the Company disposed off its entire 51% equity interest in Tongyong Resin Chemical Industry Co. Ltd. * * * The company is an affected listed issuer as Ernst & Young expressed substantial doubt regarding the company's ability to continue as a going concern after having audited the company's financial statements for the year ended June 30, 2007. The auditor pointed to the company's losses and, together with its subsidiaries, the default on the repayment of various financial obligations. ==================== N E W Z E A L A N D ==================== AUTO NET: Court to Hear Wind-Up Petition on February 18 ------------------------------------------------------- A petition to have Auto Net Cars Ltd.'s operations wound up will be heard before the High Court at Auckland on Feb. 18, 2009, at 10:45 a.m. Essex Cabinet Makers Limited filed the petition against the company on September 23, 2008. Essex Cabinet's solicitor is: S. C. Price Minter Ellison Rudd Watts Lumley Centre, Level 20 88 Shortland Street PO Box 3798, Auckland 1010 BSB CONSTRUCTION: Fixes December 19 as Last Day to File Claims -------------------------------------------------------------- The creditors of BSB Construction Ltd. are required to file their proofs of debt by December 19, 2008, to be included in the company's dividend distribution. The company's liquidators are: Paul Graham Sargison Gerald Stanley Rea Gerry Rea Partners PO Box 3015, Auckland Telephone:(09) 377 3099 Facsimile:(09) 377 3098 BUYERS AGENT ET AL: Fixes Jan. 30 as Last Day to File Claims ------------------------------------------------------------ Craig Alexander Sanson fixes January 30, 2008, as the last day to file proofs of debt for the creditors of: -- Buyers Agent Limited; and -- Property & Company Management Limited. The Liquidator can be reached at: Craig Alexander Sanson c/o PricewaterhouseCoopers 113-119 The Terrace PO Box 243, Wellington Telephone:(04) 462 7000 Facsimile:(04) 462 7492 MIT PLASTERING: Court to Hear Wind-Up Petition on December 15 ------------------------------------------------------------- A petition to have MIT Plastering Ltd.'s operations wound up will be heard before the High Court of Auckland on December 15, 2008, at 11:45 a.m. The Commissioner of Inland Revenue filed the petition against the company on October 2, 2008. The CIR's solicitor is: Sandra Joy North Inland Revenue Department Legal and Technical Services 17 Putney Way PO Box 76198, Manukau Auckland 2241 Telephone:(09) 985 7274 Facsimile:(09) 985 9473 MOTHERS FAVOURITES: Commences Liquidation Proceedings ----------------------------------------------------- Mothers Favourites Ltd. commenced liquidation proceedings on November 11, 2008. Only creditors who were able to file their proofs of debt by Nov. 11, 2008, will be included in the company's dividend distribution. The company's liquidator is: G. L. Hansen Goldsmith Fox PKF, PO Box 13141 Christchurch Telephone:(03) 366 6706 Facsimile:(03) 366 0265 NETTEN FARM: Appoints Parsons and Kenealy as Liquidators -------------------------------------------------------- On November 10, 2008, Dennis Clifford Parsons and Katherine Louise Kenealy were appointed as liquidators of Netten Farm Lands Ltd. The Liquidators can be reached at: Dennis Clifford Parsons Katherine Louise Kenealy Indepth Forensic Limited PO Box 278, Hamilton Telephone:(07) 957 8674 Website: http://www.indepth.co.nz NEW ZEALAND AIR: Creditors' Proofs of Debt Due on December 17 ------------------------------------------------------------- The creditors of New Zealand Air Braking Consultants Ltd. are required to file their proofs of debt by December 17, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Nov. 10, 2008. The company's liquidator is: Kim S. Thompson PO Box 1027, Hamilton Telephone:(07) 834 6813 Facsimile:(07) 834 6104 e-mail: kim@kstca.co.nz PINEHURST LTD: Court Hears Wind-Up Petition ------------------------------------------- On December 1, 2008, the High Court at Christchurch heard a petition to have Pinehurst Ltd.'s operations wound up. Auckland City Council filed the petition against the company on September 30, 2008. PROPERTY EDGE: Court Hears Wind-Up Petition ------------------------------------------- On December 5, 2008, the High Court at Auckland heard a petition to have Property Edge Ltd.'s operations wound up. The Commissioner of Inland Revenue filed the petition against the company on August 6, 2008. The CIR's solicitor is: Simon John Eisdell Moore Meredith Connell Forsyth Barr Tower, Level 17 55-65 Shortland Street PO Box 2213, Auckland TATTOO BRAND: Commences Liquidation Proceedings ----------------------------------------------- Tattoo Brand Management Ltd. commenced liquidation proceedings on November 13, 2008. The company's liquidators are: Wayne John Deuchrass Iain Andrew Nellies c/o Insolvency Management Limited 148 Victoria Street, Level 1 PO Box 13401, Christchurch ===================== P H I L I P P I N E S ===================== OCEANAGOLD: Puts Didipio Project Under Maintenance -------------------------------------------------- OceanaGold Corporation said that it has placed the Didipio gold- copper project located in Northern Luzon, Philippines on care and maintenance following completion of the strategic review that began in July. During this period of time, the company said, it will continue to work closely with its key stakeholders including the local community, local government units in Nueva Viscaya and Quirino provinces as well as the National Government of the Philippines through the offices of the DENR (Department of Environment and Natural Resources) and the MGB (Mineral Geosciences Bureau). OceanaGold CEO, Stephen Orr said "The deterioration of global economic conditions has required that we take prudent measures in order to secure and preserve our assets in the Philippines. We recognize the inherent value that the Didipio project and our exploration portfolio in the Philippines represent for shareholders but the uncertainty around current financial markets dictates that we affect this strategy." CEO Steve Orr went on to say, "The Company will maintain focus on its New Zealand gold operations where we expect to again increase production in the fourth quarter of 2008. In 2009, we plan to produce between 280,000 and 300,000 ounces of gold at cash costs of less than US$475 per ounce. In these uncertain times, we are focused on maximizing revenue and reducing expenditures to further strengthen the Company's financial position for the near-term." According to BusinessWorld Online, Philippine government said that Oceanagold is in talks with several investors to sell its controlling stake in the Didipio gold and copper project in Nueva Vizcaya. BusinessWorld quoted DENR Secretary Lito Atienza as saying "I believe they're negotiating for the sale of Didipio." Without giving names, BusinessWorld notes, Mr. Atienza said there were three local firms interested in the project. However, the company had no plans for now to divest itself of its 92% interest in the Didipio project, BusinessWorld relates citing OceanaGold's spokesman Darren Klinck. About OceanaGold Based in Melbourne, Australia, OceanaGold Corporation (ASX:OGC) -- http://www.oceanagold.com.au/-- is engaged in exploration and the development and operation of gold and other mineral mining activities. OceanaGold is a gold producer and is operating two open cut mines at Macraes and Reefton in New Zealand and nearing the completion of the development of the new Frasers underground mine. The company's projects are Macraes Gold Project, Reefton Gold Project and Didipio Gold Copper Project. The Macraes Project is located 100 kilometers by road, north of Dunedin in the Otago region of the South Island of New Zealand. The Reefton Project is located approximately 7 kilometers southeast of the township of Reefton, within the West Coast region of New Zealand's South Island. The Didipio Gold Copper Project is located approximately 270 kilometers north of Manila in the Philippines. On June 25, 2007, the company acquired Oceana Gold Ltd (Oceana). * * * OceanaGold Corporation reported three consecutive annual net losses of US$18.617 million, US$23.427 million, and US$69.039 million for the financial years ended 2005, 2006 and 2007, respectively. SECURITY BANK: Completes PHP3.0 Bil. Offering Thru Notes Issue -------------------------------------------------------------- Security Bank Corporation has completed the offering of its Peso Lower Tier 2 Notes, enabling it to raise funds that should allow it to retire PHP3 billion worth of outstanding Tier 2 debt ahead of schedule, BusinessWorld Online reports. Citing a disclosure to the Philippine Stock Exchange, the report relates that Security Bank was able to raise PHP3 billion when it made the Tier 2 debt notes available from Nov. 19 to Nov. 28. The notes, BusinessWorld discloses, bore an interest rate of 8.625% fixed for the first five years. The notes will mature in 10 years, with a call option on the first banking day of the 20th interest period in 2013. As reported by the Troubled Company Reporter-Asia Pacific on November 19, 2008, Security Bank Corporation launched its Peso Lower Tier 2 Notes with an indicative issue size of PHP3 billion. The bank said the lead managers and selling agents for this transaction are Deutsche Bank AG and ING Bank N.V., Manila branch. Other selling agents for this transaction include Multinational Investment Bancorporation with Security Bank Corporation as a limited selling agent. Based in Makati City, Philippines, Security Bank Corporation (PSE:SECB) -- http://www.securitybank.com.ph-- is a commercial bank. The Bank's principal business activities include Commercial Banking, which encompasses the Corporate Relationship Group (CRG), the Branch Banking Group (BBG) and Consumer Lending, and Investment Banking, which encompasses the Treasury Group, the Fixed Income & Securities Division and the Bank's investment house. It operates in three business segments: consumer, corporate and treasury, and investment banking. The Bank has investments in financing and leasing, foreign exchange brokerage, stock brokerage, investment banking and asset management through its wholly owned subsidiaries. The CRG provides lending, trade and cash management services to corporate and institutional customers. The BBG addresses the individual, retail and small- and-medium enterprise markets, as well as corporates not handled by CRG. For the Bank, consumer lending is composed of the credit card and auto finance businesses. * * * As reported by the Troubled Company Reporter-Asia Pacific on October 9, 2008, Fitch Ratings affirmed Philippine-based Security Bank Corporation's Long-term foreign and local currency Issuer Default Ratings at 'BB', Short-term foreign currency IDR at 'B', National Long-term rating at 'AA-(phl)' (AA minus(phl)), Individual 'D', Support '4', Support Rating Floor 'B+' and the subordinated debt programme rating at 'BB-'. The Outlook on the ratings remains Stable. ================ S R I L A N K A ================ PAN ASIA: Fitch Puts 'BB+' Rating on Proposed Sub. Debenture Issue ------------------------------------------------------------------ Fitch Ratings Lanka Ltd has assigned a 'BB+(lka)' National Long- term rating to Pan Asia Banking Corporation PLC's proposed unsecured, redeemable (five-year) subordinated debenture issue of up to LKR150m. Simultaneously, the agency affirmed PABC's National Long-term rating at 'BBB-(lka)' (BBB minus(lka)). The Outlook is Stable. The rating factors in the bank's improving capitalization and profitability, but remains constrained by the need to meet the minimum capital requirement set by Central Bank of Sri Lanka by FYE09, its high net NPL/equity ratios and concentrations in its credit portfolio. In terms of priority, the debentures will rank below deposits and all senior debt obligations, but will rank above ordinary and preference shares. In accordance with Fitch's criteria, the rating assigned to PABC's unsecured subordinate debentures is one notch lower than its National Long-term rating. PABC's loans were extended mainly to small and medium-sized entities, retail customers and to larger corporates. Incremental loans since FYE06 have shifted towards the corporate loan book, with loans to mid-sized corporates and large corporates accounting for 61% of the loan book at nine months ended September 2008 (Q308) from 50% at FYE06. Credit concentrations remained high in the export-import and wholesale trading sectors; loans to these sectors accounted for approximately 44% of loans at Q308. Given the challenging economic condition, the bank reduced loan growth in Q308, with loans increasing by just 6.8% in Q308 (FY07 loan growth: 27.6%), comprising largely of overdrafts and medium term working capital loans to corporates. The bank's NPL/Gross loans ratio steadily improved to 7.3% at FYE07 (FYE01: 35.1%). Subsequent to recent changes by CBSL on NPL classification in early 2008, PABC's NPLs increased to 10.8% in Q108, and a further 12.0% at Q308, on account of the challenging macro economic conditions. The Net NPL/equity ratio increased to 65.7% at Q308 from 55.1% at Q108. ROA and net interest margins were good at 1.3% and 7.0%, respectively, at Q308 (FY07: 1.5% and 6.2%) This was due to better margins on PABC's trade finance related segment, and the impact of better capitalisation subsequent to the equity infusion in FY06, and increased internal capital generation since FY04 to date. The bank's Tier I ratio and capital adequacy ratio was 11.78% and 12.61%, respectively, at Q308 (FYE07: 14.71% and 15.91%). Its equity/assets ratio was 8.7% at Q308 (FYE07: 8.9%) and compares well with its peers. This debenture issue will increase PABC's Tier II capital and lengthen the bank's liability maturities. PABC, which commenced operations in 1995, is a small licensed commercial bank with an asset base of LKR 17.6bn at Q308. The bank is majority-owned (39.6% at FYE07) by Mr KDD Perera and related parties. VALLIBEL FINANCE: Fitch Affirms Long-Term Rating at 'B+' -------------------------------------------------------- Fitch Ratings Lanka has affirmed Sri Lanka's Vallibel Finance Ltd's National Long-term rating at 'B+(lka)'. The Outlook remains Stable. VFL's rating factors in its small asset base, relatively weak asset quality and modest financial profile. VFL has rapidly grown its loan book over the last 18 months, branching into lease and loan products from a portfolio previously dominated by hire purchase facilities for three-wheelers. Total advances increased to LKR1,054.8m at H109 ending September 08 (FYE07: LKR34m) comprising HP (74%), leases (22%) and fixed deposit loans (4%). The company has also shifted its focus away from three-wheelers and, as at H109, 52.2% of vehicles financed comprised of cars and dual purpose vehicles, with the remainder mainly vehicles used for commercial passenger and goods transport. However, the seasoning of its portfolio has also resulted in an increase in the company's NPLs - the three-month gross NPL ratio increased to 19.7% at FYE08. Although this reduced to 17.4% at H109, NPLs at the regulatory six-month level increased to 2.4% of gross loans (FYE08: 0.6%), indicating a worsening in arrearage of existing NPLs. These figures are nevertheless inline with the registered finance company sector figures of 13.7% (three-month) and 4.8% (six-month) at H109. Profits contracted in FY08 on account of reduced net interest margins and higher provisioning costs incurred in the first half of the year. VFL's pre-tax ROA fell to 5.0% in FY08 (FY07: 5.3%); also, a higher effective tax rate of 56.5% in FY08 resulted in post-tax ROA shrinking further to 2.2% (FY07: 3.9%). Nevertheless, improved margins together with higher levels of non- interest income in H109 caused ROA to rise to 3.3% in H109, which compares well with the RFC sector ROA of 1.9%. In line with its plan to fund future growth through deposits, VFL's previously stagnant deposit base increased substantially to LKR759.6m in the 12 month period ending September 2008 (FYE07: LKR31.6m) and accounted for 56.7% of its funding base at end-H109. An equity infusion of LKR85m by existing shareholders in H109 enabled VFL to meet the LKR200m regulatory minimum capital requirement imposed by the Central Bank of Sri Lanka. VFL's capital position is adequate to meet its present requirements, and it had a 16.4% equity/assets ratio and a total capital adequacy ratio of 21.9% at H109. Nevertheless, with a three-month net NPLs/equity ratio of 77.9% at H109 (5.6% at six months), Fitch notes that a further weakening in asset quality could provide a stress on VFL's small equity base. VFL, previously Rupee Finance Limited, was established as an RFC in 1974. Following its acquisition by high-net-worth businessman, Mr. Dhammika Perera, through his holding company Vallibel Investments Ltd. in September 2005, it was re-structured and re- branded as VFL. ====================== S O U T H A F R I C A ====================== * SOUTH AFRICA: Global Slowdown Puts Many Jobs at Risk ------------------------------------------------------ According to a report by KPMG LLP, more than a third of the 120 biggest companies in South Africa may fire workers in the next six months, Bloomberg News reported citing Johannesburg-based Business Day. Bloomberg News said based on the report, companies in the construction, mining, financial services, forestry and vehicle industries will be most affected by job losses. About 65 percent of companies will probably offer workers voluntary retrenchment packages rather than forcing them out of work, the same report said. Meanwhile, the Associated Press reported unions said last week about 10,000 workers are expected to lose their jobs as South Africa's mining industry copes with the global financial crisis. Jaco Kleynhans, a spokesman for the Solidarity union, told the AP eight mines have issued lay off notices to about 9,000 workers and that another 1,000 job losses were expected. =========== T A I W A N =========== WAN HAI: Industry Risks Cue S&P to Cut Corp. Credit Rating to BB+ ----------------------------------------------------------------- Standard & Poor's Ratings Services said it had lowered its corporate credit rating on Wan Hai Lines Ltd. to 'BB+' from 'BBB-'. At the same time, S&P lowered the issue rating on the unsecured corporate bonds of Wan Hai's wholly owned subsidiary, Wan Hai Lines (Singapore) Pte. Ltd., to 'BB' from 'BB+'. The ratings were removed from CreditWatch with negative implications, where they were placed on Nov. 17, 2008. The outlook on the corporate credit rating is negative. The rating action is based on the heightened industry risks that Wan Hai faces as the global shipping market is likely to weaken further over the next several quarters due to rapidly slowing demand amidst the global economic downturn. "Wan Hai's operating result for the quarter ended Sept. 30, 2008 was one of its weakest earnings performances over the past ten years, due mostly to rising bunker costs," said credit analyst Daniel Hsiao. "Wan Hai has recently reduced its exposure to volatile long-haul routes by refocusing on the more stable intra- Asia market. Nonetheless, S&P expects Wan Hai's performance to remain under pressure over the next several quarters due to low demand and falling freight rates that offset the benefit of declining bunker costs." The negative outlook reflects the risk that industry conditions could continue to weaken due to slowing demand, which will further weaken Wan Hai's profitability and credit matrix. =============== X X X X X X X X =============== * Detroit 3 Willing to Work Under Gov't Oversight Board ------------------------------------------------------- CEOs of General Motors Corp., Ford Motor Co., and Chrysler LLC said on Thursday that they would be willing to put the companies under a government oversight board's supervision to secure financial help from the government, Josh Mitchell and Corey Boles at The Wall Street Journal reports. According to WSJ, Banking Committee Chairperson Christopher Dodd asked the CEOs during a Senate hearing on Thursday whether they would be willing to work within a structure similar to what was established for Chrysler Corp.'s federal bailout in 1979-1980. The report says that GM's Rick Wagoner, Ford Motor's Alan Mulally and Chrysler's Robert Nardelli agreed that the board could have the legal authority to dictate restructuring terms to the companies and others including unions, suppliers, and dealers. WSJ relates that Messrs. Wagoner, Mulally, and Nardelli admitted that they made mistakes in their management and told the lawmakers that they were unprepared for congressional hearings in November. The report says that after the Congress criticized the CEOs for not having credible plans to turn around their firms, the executives came back with detailed turnaround plans for each of their companies, increasing their financial aid request to US$34 billion from US$25 billion. According to WSJ, GM is asking for an immediate loan of about US$4 billion to stay afloat until year-end and an additional US$14 billion in 2009. Chrysler, says WSJ, is asking for an immediate loan of US$7 billion by year-end, while Ford Motor seeks for a US$9 billion line of credit. WSJ reports that as the Federal Reserve is expected to refuse the automakers' requests, the Congress and the Bush administration would decide on the matter. WSJ relates that the Democratic leaders have asked the Federal Reserve to review the turnaround plans. The report states that the central bank can lend to non- financial companies on a fully secured basis. Loans must be backed by assets, and GM, Ford Motor, and Chrysler don't appear to have collateral that would meet the criteria, according to the report. Sen. Dodd, WSJ states, was focusing on legislation that would create a bridge loan for automakers, by diverting funds from an loan program intended to help the industry retool to meet higher fuel-economy standards. WSJ reports that Senate Majority Leader Harry Reid urged Sen. Dodd to move forward. A bill supported by Democrats that would draw on the US$700 billion market rescue fund couldn't pass Congress, the report says, citing Sen. Reid. Citing people familiar with the matter, James Rowley and Linda Sandler at Bloomberg News report that GM and Chrysler executives are considering accepting a pre-arranged bankruptcy as last resort in securing government bailout. According to Bloomberg, the source said that the staff for three members of Congress have asked restructuring experts if a pre- arranged bankruptcy, which would be negotiated with workers, creditors, and lenders, could be used to reorganize the industry without liquidation. Automakers May Cut Temporary Pay for Laid-Off Workers Sharon Terlep at Dow Jones Newswires relates that sources said that automakers could seek to cut temporary pay for thousands of laid-off employees. The United Auto Workers, says the report, is preparing to revise labor deals reached with GM, Ford Motor, and Chrysler in 2007, agreeing to a delay in the payment of billions of dollars into a massive retiree health-care trust and the termination of the jobs bank program to help the companies secure the federal loans. According to Dow Jones, thousands of workers who are temporarily out of a job get supplementary unemployment benefits called SUB from the automakers under a separate fund. The SUB pay is less expensive for automakers on a per-worker basis than the jobs bank, but workers receiving the benefit have increased as the companies cut jobs and production due to decline in sales, states the report. ********* 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 ***