/raid1/www/Hosts/bankrupt/TCRAP_Public/081217.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, December 17, 2008, Vol. 11, No. 250
Headlines
A U S T R A L I A
ALAN DICK: Members Receive Wind-Up Report
AMARAY INVESTMENTS: Declares Dividend
BAYT NO.7: Members and Creditors Hear Wind-Up Report
BAYT PROPERTY: Members and Creditors Hear Wind-Up Report
COOLABAH ENVIRO: Declares First and Final Dividend
FORTRADE IMPORTS ET AL: Members and Creditors Hear Wind-Up Report
GENESIS LIQUOR: Declares Final Dividend
GRIFFIN COAL: S&P Cuts Rating to 'B-'; Watch Negative Removed
J & W LAW: Placed Under Voluntary Liquidation
LEND LEASE: Appoints McCann as CEO
L.V. HOPKINS: Creditors Receive Wind-Up Report
NISSAN AUSTRALIA: To Cut 50 Jobs Next Month
NURSING MANAGEMENT: Inability to Pay Debts Prompts Wind-Up
OZ MINERALS: Axes 135 Employees in Queensland
PACIFIC TOYOTA: Placed in Receivership
RADALEX PTY: Placed Under Voluntary Liquidation
RIO TINTO GROUP: BHP Plans to Buy Escondida Mine Stake
S.L. ELECTRONICS: Declares Final Dividend
SEAMLESS TECHNOLOGY: Appoints Kugel and Warner as Liquidators
SMART SERIES 2008-3: Moody's Assigns B3 Rating to Class F Notes
SPAR EXPRESS ET AL: Court Enters Wind-Order
STANILITE PACIFIC: Declares Final Dividend
SUPER SAVE: Voluntary Chapter 15 Case Summary
C H I N A
CHINA CONSTRUCTION: BofA Denies Sale of Stake in Bank
CHINA FISHERY: S&P Changes Outlook to Stable; Affirms B+ Ratings
CHINA PROPERTIES: Weak Liquidity Cues S&P's B+ Corp. Credit Rating
CHINA PROPERTIES: Moody's Cuts Ratings to B2; Outlook Stable
CITIGROUP INC: To Sell Trust Banking Unit to Mitsubishi UFJ
KEY PLASTICS: Financial Woes Cue Chapter 11; Files Prepack Plan
LAIRD PLC: To Cut Global Workforce by 40%, Shutter 3 U.S. Plants
MANDRA FORESTRY: Moody's Junks Corp. Family Rating; Outlook Neg.
SHIMAO PROPERTY: Moody's Cuts CFR to Ba3; Outlook Negative
H O N G K O N G
ABLE REACH: Sung Mi Yin Ceases to Act as Liquidator
CHUNG SHING: Placed Under Voluntary Liquidation
CITIC RESOURCES: Moody's Puts Ba2 CFR on Review for Downgrade
FAIRLITE INDUSTRIES: Appoints Lee Chi Fan as Liquidator
FLOWERCENTER LIMITED: Creditors' Proofs of Debt Due on January 15
GLORY ROUTE: Creditors' Proofs of Debt Due on January 12
GLOBAL WORKS: Members' Final Meeting Set for January 13
KERRY INVESTMENTS: Creditors' Proofs of Debt Due on January 12
MCDREEDY INVESTMENTS: Creditors' Proofs of Debt Due on January 13
SKY BRAVE: Creditors' Meeting Set for December 20
TAI YAT: Creditors' Meeting Set for December 24
WINVIEW (HK): Creditors' Proofs of Debt Due on January 13
I N D I A
GENERAL MOTORS: Lets GMAC Defer US$1.5B Payment Until Dec. 30
TATA MOTORS: S&P Downgrades Corporate Credit Rating to 'BB-'
J A P A N
AKEBONO BRAKE: Would Lose the Most if GM or Chrysler Go Bankrupt
BTMU: Completes System Integration
MERRILL LYNCH: To Be Delisted in TSE on December 25
SPANSION INC: Fitch Sees Likely Default, Junks Ratings on $1B Debt
TAKATA CORP: GM or Chrysler Bankruptcy Could Severely Affect Biz
K O R E A
SAMSUNG ELECTRONICS: May Post First Quarterly Loss in 8 Yrs.
* KOREA: Gov't. to Invest KRW1.65 Tril. in 3 State-Run Banks
K U W A I T
GLOBAL INVESTMENT: Fitch Junks Long-Term IDR; Watch Negative
M A L A Y S I A
SATANG HOLDINGS: Posts MYR7.57MM Net Loss in Qtr. Ended Sept. 30
N E W Z E A L A N D
BRIDGECORP LTD: Ex-Directors Depositions Hearing Set on Feb. 24
CONSOLIDATED TECH: High Court Orders Liquidation of Business
CONSTELLATION RENTALS: Creditors' Proofs of Debt Due on Dec. 22
DR STIFF: Creditors' Proofs of Debt Due on Dec. 19
ECS PERSONNEL: Court to Hear Wind-Up Petition on December 19
FCL LOGISTICS: Court Hears Wind-Up Petition
FLASH LIGHTS: Court Hears Wind-Up Petition
GENEVA FINANCE: May Face Suspension for Late Half Year Reporting
GOLDEN CITY: Fixes December 28 as Last Day to File Claims
HAPPY DAYS: Court Hears Wind-Up Petition
J.T. PAINTERS: Court to Hear Wind-Up Petition on December 19
JAPANESE RESTAURANT: Court to Hear Wind-Up Petition on December 19
MS INTERNATIONAL: Court Hears Wind-Up Petition
N Y INTERNATIONAL: Court Hears Wind-Up Petition
O'RORKE LTD: Creditors' Proofs of Debt Due on Dec. 23
OWEN'S PAINTING: Court Hears Wind-Up Petition
PLUS SMS: Has Until Dec. 22 to File Half Year Report
SEALITE INVESTMENTS: Appoints Grant and Khov as Liquidators
WAIPA WATER: Appoints David Petterson as Liquidator
WEBNICHE LTD: Appoints Sherriff and Vance as Liquidators
P A K I S T A N
* Moody's Confirms Pakistani Banks' B3 Deposit Ratings
S I N G A P O R E
PARKWAY HOLDINGS: Cuts Salaries, Lays Off 148 Workers
S R I L A N K A
EDIRISINGHE TRUST: Fitch Upgrades Long-Term Rating to 'BB-(lka)'
UNITED ARAB EMIRATES
* Mounting Pressures Cue Moody's to Change Outlooks on 4 UAE Banks
X X X X X X X X
* GM & Chrysler Default Risk Hinges on Government Action, S&P Says
* INSOL Recognizes First Global Insolvency Practice Course Grads
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A U S T R A L I A
=================
ALAN DICK: Members Receive Wind-Up Report
-----------------------------------------
The members of Alan Dick (Australia) Pty Ltd met on Dec. 2, 2008,
and received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company also declared final dividend on Nov. 11, 2008.
The company's liquidators are:
David J F Lombe
Simon J Cathro
Grosvenor Place 225 George Street
Sydney NSW 2000
AMARAY INVESTMENTS: Declares Dividend
-------------------------------------
Amaray Investments Pty Ltd declared dividend on Nov. 19, 2008.
Only creditors who were able to file their proofs of debt by
Nov. 12, 2008, were included in the company's dividend
distribution.
The company's liquidator is:
Steven Nicols
Web site: http://www.bankrupt.com.au
BAYT NO.7: Members and Creditors Hear Wind-Up Report
----------------------------------------------------
The members and creditors of Bayt No.7 Pty Limited met on Nov. 21,
2008, and received the liquidator's report on the company's wind-
up proceedings and property disposal.
BAYT PROPERTY: Members and Creditors Hear Wind-Up Report
--------------------------------------------------------
The members and creditors of Bayt Property Services No.2 Pty
Limited met on November 21, 2008, and received the liquidator's
report on the company's wind-up proceedings and property disposal.
COOLABAH ENVIRO: Declares First and Final Dividend
--------------------------------------------------
Coolabah Enviro Services Pty Limited, which is in liquidation,
declared first and final dividend on November 28, 2008.
Only creditors who were able to file their proofs of debt by
Nov. 13, 2008, were included in the company's dividend
distribution.
The company's liquidators are:
J. A. Shaw
S. A. Newton
Ferrier Hodgson (Newcastle)
PO Box 840
Newcastle NSW 2300
Telephone:(02) 4908 4444
Facsimile:(02) 4908 4499
FORTRADE IMPORTS ET AL: Members and Creditors Hear Wind-Up Report
-----------------------------------------------------------------
On November 24, 2008, Schon G. Condon, presented a report on the
wind-up proceedings and property disposal to the members and
creditors of these companies:
-- Fortrade Imports Pty Limited; and
-- Scan Security Aust Pty Limited.
The company's liquidator is:
Schon G. Condon
c/o Condon Associates
Telephone:(02) 9893 9499
GENESIS LIQUOR: Declares Final Dividend
---------------------------------------
Genesis Liquor Distributors Pty Ltd, which is in liquidation,
declared the final dividend on November 21, 2008.
Only creditors who were able to file their proofs of debt by
November 13, 2008, were included in the company's dividend
distribution.
The company's liquidator is:
David J. Kerr
RSM Bird Cameron Partners
60 Castlereagh Street, Level 12
Sydney NSW 2000
GRIFFIN COAL: S&P Cuts Rating to 'B-'; Watch Negative Removed
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
rating on The Griffin Coal Mining Company Pty Ltd. (Griffin) to
'B-', from 'B+', and removed the rating from CreditWatch with
negative implications, where it was placed on Oct. 27, 2008.
The outlook is negative.
S&P said: "Resolution of the CreditWatch follows our review of
Griffin's financial profile, especially its liquidity position and
forecast cash-flow profile over the next 12-to-18 months.
Liquidity was weaker at Sept. 30, 2008, and commissioning of the
company's Bluewaters 1 plant is now not expected until
April 2009. Furthermore, the combined financial results for
Griffin and Carpenter Mine Management Pty Ltd. (borrowing group)
for the three months to Sept. 30, 2008 indicated continued
negative cash flows from operations, partly due to the timing of
receipts."
"While we viewed the repayment of a Griffin loan from a related
party as positive, there is limited visibility about the capacity
of the parent company to provide additional support," Standard &
Poor's credit analyst Brenda Wardlaw said. "Furthermore, while
the weakness in cash-flow generation in fiscal 2008 and the first
quarter of 2009 was partly due to the timing of receipts and
external factors that affected operating costs, management fees to
related parties also remained high. We also note that Griffin's
earnings are dependent on management fees to, and interest income
from, related parties."
"The negative outlook reflects our view that the rating could be
downgraded if Griffin's liquidity weakens due to further delays in
commissioning the Bluewaters 1 power station or other operational
issues in its mining operations. Revision to a stable outlook
would require Griffin to successfully complete its growth plans
over the next 12 to 18 months while increasing its liquidity
buffer to assist financial flexibility."
J & W LAW: Placed Under Voluntary Liquidation
---------------------------------------------
During a general meeting held on September 30, 2008, the members
of J & W Law Pty Limited resolved to voluntarily liquidate the
company's business.
The company's liquidator is:
Angus Gordon
Macquarie Gordon & Co
HSBC Building, Level 5
580 George Street
Sydney NSW 2000
LEND LEASE: Appoints McCann as CEO
----------------------------------
Lend Lease Corporation Limited disclosed the appointment of its
current Finance Director, Steve McCann, as Chief Executive
Officer. The appointment follows a global search process,
announced in August this year, which included assessment of a
number of high quality external and internal candidates.
Mr. McCann will formally take over as Group Managing Director from
Greg Clarke, early in 2009 following a transition period to ensure
a smooth handover of responsibilities.
Mr. McCann has more than 15 years' experience in property, first
in his capacity as an investment banker advising a number of large
Australian property companies including Lend Lease and more
recently in his three years as a senior group executive with Lend
Lease. He joined Lend Lease in September 2005 as Global CEO of
the Investment Management business before moving into the group
Finance Director role in March 2007.
Lend Lease Chairman, Mr. Crawford said: "We are delighted to
confirm Steve McCann's appointment "
"Steve's strategic focus and management strength became clear as
he guided the repositioning of the Group's Investment Management
business to become widely regarded as a leading wholesale fund
manager in the property investment market.
"As a member of the senior executive team, Steve has been a key
driver of the Company's integrated business model. In his role as
Finance Director, he has worked closely with the Board to enhance
the Group's risk management processes and has been instrumental in
ensuring the company's capital structure has remained one of the
strongest in the industry.
"Steve has already made a significant contribution to Lend Lease.
His financial and earlier legal experience together with his in
depth knowledge of the Lend Lease Group, make him well prepared
for the CEO role. The search process confirmed that he is the best
person to lead the Company through the turbulent market conditions
at present and on to its next phase of growth," Mr Crawford said.
Mr. Crawford also paid tribute to Mr Clarke's contribution over
six years at the helm of Lend Lease.
"Greg leaves Lend Lease in a sound financial position and with a
significant backlog of attractive development positions in its key
markets and sectors. He drove the revitalization of the business
including the creation of its integrated business model," Mr.
Crawford said.
"Greg recruited Steve McCann three years ago as a potential
successor and has actively participated with the Board in the
recent search and benchmarking process.
"The Board extends our sincere thanks to Greg for his achievements
as CEO and his willingness to remain at Lend Lease to assist our
new CEO with a smooth transition process," he said.
Brad Soller, Deputy Chief Financial Officer, has been appointed
interim CFO while an extensive search and benchmarking process is
conducted both internally and externally to ensure the CFO role is
also filled by the best possible candidate.
Meanwhile, Garfield Reynolds and Jason Scott at Bloomberg News
report that Lend Lease is struggling to fund its investment in
London's GPB1 billion (US$1.5 billion) Olympic Village.
According to Bloomberg, Lend Lease and other developers of the
Olympic site, Europe's largest public construction project,
haven't been able to get bank loans.
The U.K. Government, Bloomberg relates, has paid at least 95
million pounds toward construction of the site, which will house
athletes in the 2012 games.
Bloomberg says Lend Lease closed 46 cents, or 6.2 percent,
yesterday, Dec. 16, lower to AU$6.92 in Sydney, cutting its market
value to AU$2.8 billion ($1.9 billion). The stock has dropped 60
percent this year, outpacing a 44 percent slide in Australia's
benchmark ASX/S&P 200 index.
About Lend Lease
Lend Lease Corporation, headquartered in Sydney, Australia, is
involved in various property related activities in Asia Pacific,
USA and Europe. The company's operations are diversified into
retail and residential property development, construction
activities and funds management.
FKP is a Queensland-based property company with total asset of
AU$3.8 billion as at December 2007.
L.V. HOPKINS: Creditors Receive Wind-Up Report
----------------------------------------------
The members of L.V. Hopkins (Holdings) Pty Limited met on Nov. 28,
2008, and received the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidators are:
B. H. Allen
P. G. Burton
Burton Glenn Allen Chartered Accountants
57 Grosvenor Street, Level 2
Neutral Bay NSW 2089
NISSAN AUSTRALIA: To Cut 50 Jobs Next Month
-------------------------------------------
Neil McDonald at Heraldsun reports that Nissan Australia plans to
shed 50 jobs next month at its Dandenong South aluminium casting
plant.
According to the report, Nissan Australia managing director Dan
Thompson said the decision was made after a lengthy program of
cost cutting and a business review.
"Over the past six months production volumes have dipped to an
unsustainable level," Heraldsun quoted Mr. Thompson as saying.
The company, Heraldsun relates, is calling for voluntary
redundancies among factory and office workers to meet its target.
Nissan Casting Plant Australia makes aluminium engine and
transmission diecast products. The company employs 203 people on
three shifts. The Dandenong South plant has been operating since
1982 and produces 2.8 million parts annually.
NURSING MANAGEMENT: Inability to Pay Debts Prompts Wind-Up
----------------------------------------------------------
The members of Nursing Management Solutions Pty Limited met on
October 8, 2008, and resolved to voluntarily liquidate the
company's business due to its inability to pay debts when it fall
due.
The company's liquidator is:
Geoffrey Reidy
c/o Rodgers Reidy
333 George Street, Level 8
Sydney NSW 2000
OZ MINERALS: Axes 135 Employees in Queensland
---------------------------------------------
OZ Minerals Limited has laid off 135 contractor workers at its
Century mine in Queensland.
Oz Minerals, The Age relates, laid off 110 workers at its Lawn
Hill site and 25 at its associated Karumba port facility on
Friday, December 12.
Oz Minerals said that the cut is a 12 per cent reduction in the
workforce at its Century mine.
"Reducing operating and capital costs, changing our three-year
plan to reflect reduced costs and constantly adapting to changes
in world markets has not been enough to keep the business in the
black. We have had to look even harder at our business
activities, and eliminate those that are not absolutely essential
to continuing production," Oz Minerals Century Mine general
manager John Lamb said in a statement.
"Making decisions that cost jobs is always difficult, but they are
driven by the need to ensure OZ Century survives this economic
downturn and is around to take advantage of conditions when they
improve.
"We remain committed to keeping as many people employed as long as
we can. The management team has made an open commitment to share
relevant information with staff as soon as it becomes available."
About OZ Minerals
OZ Minerals Limited, formerly Oxiana Limited, --
http://www.ozminerals.com/-- is an Australia-based mining
company. The company is a producer of zinc, copper, lead, gold
and silver. OZ Minerals was formed through a merger of Australia-
based international mining companies Oxiana Limited and Zinifex
Limited. The company has five mining operations located in
Australia and Asia, three new mining projects in development and a
portfolio of advanced and early-stage exploration projects
throughout Australia, Asia and North America. Its projects
include the Century mine in Queensland, Sepon copper operation in
Laos, the gold operation at Sepon, the Golden Grove underground
base and precious metals mine in Western Australia, the Rosebery
mine in Tasmania, the Avebury nickel mine in Tasmania, the
Prominent Hill copper-gold project in South Australia, the Martabe
gold project in Indonesia, the Dugald River deposit in Queensland,
and the Izok Lake and High Lake copper and zinc deposits in the
Nunavut territories of Canada.
* * *
As reported by The Troubled Company Reporter-Asia Pacific on
December 12, 2008, Fitch Ratings downgraded Oz Minerals Limited's
Long-term foreign currency Issuer Default Rating to 'CC' from
'BBB-' (BBB minus), and has simultaneously withdrawn it. The
rating remained on Rating Watch Negative at the time of
withdrawal.
PACIFIC TOYOTA: Placed in Receivership
--------------------------------------
Pacific Toyota, Cairn's biggest car dealer, has been placed into
receivership, The Cairns Post reports.
Parent company Toyota Australia, Cairns Post says, will keep the
car dealer afloat until a buyer can be found.
The report relates that several prospective buyers are believed to
be interested in taking over the company.
According to the report, Pacific Toyota --
http://www.pacifictoyota.com.au/-- incorporates more than 10 new
and used car dealerships in Cairns, Emerald and Longreach and a
several service centres.
RADALEX PTY: Placed Under Voluntary Liquidation
-----------------------------------------------
During a general meeting held on September 29, 2008, the members
of Radalex Pty Ltd resolved to voluntarily liquidate the company's
business.
The company's liquidator is:
Danny Vrkic
Jirsch Sutherland & Co - Wollongong
PO Box 573
Wollongong NSW 2500
Telephone:(02) 4225 2545
Facsimile:(02) 4225 2546
RIO TINTO GROUP: BHP Plans to Buy Escondida Mine Stake
------------------------------------------------------
The Australian reports that BHP Billiton Limited has shown
interest in buying Rio Tinto Group's stake in the Escondida copper
mine in Chile.
According to the report, BHP chief financial officer Alex Vanselow
told Brazilian media that the company was "very interested" in
Rio's 30 per cent stake in Escondida, the world's biggest copper
mine, which would take BHP's share in the mine to nearly 90 per
cent.
The report relates UBS analyst Glyn Lawcock valued Rio's Escondida
stake at $US4 billion.
Mr. Lawcock, as cited by the report, said Rio was unlikely to sell
all or part of its Pilbara iron ore operations because of the
potential to double current capacity of 220 million tonnes a year.
As reported by the Troubled Company Reporter-Asia Pacific on
December 11, 2008, Rio Tinto Group plans to further reduce its net
debt by US$10 billion by the end of 2009 through expanding the
scope of assets targeted for divestment to include significant
assets not previously highlighted for sale.
Bloomberg News related BHP Billiton abandoned its hostile US$66
billion bid for Rio Tinto plc on Nov. 25 citing Rio's debt and
slumping demand for commodities.
BHP Billiton, in a November 27 statement, confirmed its offer for
Rio Tinto plc has lapsed and that, given the inter-conditionality
of its offers for Rio Tinto plc and Rio Tinto Limited, its offer
for Rio Tinto Limited has also lapsed.
As reported by the Troubled Company Reporter-Europe on Dec. 11,
2008, the debt-reduction plan will be done through expanding the
scope of assets targeted for divestment to include significant
assets not previously highlighted for sale.
Measures to reduce costs include:
-- Reducing global headcount by 14,000, comprising 8,500
contractor jobs and 5,500 employee roles (annual operating
cost saving of US$1.2 billion, upfront severance costs of
US$400 million)
-- Consolidation of offices around the Group, including the
London head office
-- Rapid acceleration in 2009 of outsourcing and off-shoring of
IT and procurement
-- Deferral of exploration and evaluation expenditure
About BHP
Based in Australia, BHP Billiton Limited --
http://www.bhpbilliton.com/ -- is a diversified natural resources
company. The company has businesses producing alumina and
aluminum, copper, energy (thermal) coal, iron ore, nickel,
manganese, metallurgical coal, oil and gas and uranium, as well as
gold, zinc, lead, silver and diamonds. The company operates in
nine customer sector groups (CSGs): petroleum, aluminum, base
metals, diamonds and specialty products, stainless steel
materials, iron ore; manganese, metallurgical coal, and energy
coal. In July 2008, the company completed the acquisition of
Anglo Potash Ltd.
About Rio Tinto
Rio Tinto -- http://www.riotinto.com/-- is an international
mining group headquartered in the UK, combining Rio Tinto plc, a
London and NYSE listed public company, and Rio Tinto Limited,
which is a public company listed on the Australian Securities
Exchange.
Rio Tinto's business is finding, mining, and processing mineral
resources. Major products are aluminium, copper, diamonds, energy
(coal and uranium), gold, industrial minerals (borax, titanium
dioxide, salt, talc) and iron ore. Activities span the world but
are strongly represented in Australia and North America with
significant businesses in South America, Asia, Europe and southern
Africa.
S.L. ELECTRONICS: Declares Final Dividend
-----------------------------------------
S.L. Electronics (NSW) Pty limited, which is in liquidation,
declared the final dividend on November 13, 2008.
Only creditors who were able to file their proofs of debt by
November 12, 2008, were included in the company's dividend
distribution.
The company's liquidator is:
Ken Rennie
Ernst & Young Chartered Accountants
680 George Street, Level 37
Sydney NSW 2000
Telephone:(02) 9248 5862
SEAMLESS TECHNOLOGY: Appoints Kugel and Warner as Liquidators
-------------------------------------------------------------
During a general meeting held on October 10, 2008, the members of
Seamless Technology Services Pty Limited appointed Steven Kugel
and Anthony Warner as the company's liquidators.
The Liquidators can be reached at:
Steven Kugel
Anthony Warner
Website: http://www.liquidationdirect.com.au
Telephone:(02) 8243 5200
SMART SERIES 2008-3: Moody's Assigns B3 Rating to Class F Notes
---------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to notes
issued by SMART Series 2008-3 Trust.
The transaction is a securitization of a portfolio of Australian
commercial hire purchase agreements, chattel mortgages, finance
leases and novated leases secured by motor vehicles and other
commercial equipment originated by Macquarie Leasing Pty Limited.
COMPLETE RATING ACTION:
* P-1 to the Class A-1 Notes;
* Aaa to the Class A-2 Notes;
* Aa1 to the Class B Notes;
* A2 to the Class C Notes;
* Baa3 to the Class D Notes;
* Ba3 to the Class E Notes;
* B3 to the Class F Notes;
The Seller Notes are not rated by Moody's.
The ratings address the expected loss posed to investors by the
legal final maturity. The structure allows for timely payment of
interest and ultimate payment of principal with respect to the
Notes by the legal final maturity.
The following Provisional Ratings were assigned on Dec. 9, 2008:
* (P)P-1 to the Class A-1 Notes;
* (P)Aaa to the Class A-2 Notes;
* (P)Aa1 to the Class B Notes;
* (P)A2 to the Class C Notes;
* (P)Baa3 to the Class D Notes;
* (P)Ba2 to the Class E Notes;
* (P)B2 to the Class F Notes;
The Seller Notes are not rated by Moody's.
The principal methodology used in rating the transaction was "The
Lognormal Method Applied to ABS Analysis", September 2000, which
can be found on http://www.moodys.comin the Credit Policy &
Methodologies directory, in the Ratings Methodologies
subdirectory. Other methodologies and factors that may have been
considered in the process of rating this issue can also be found
in the Credit Policy & Methodologies directory.
As part of its modelling in accordance with Moody's log-normal
curve approach Moody's assumed a mean default rate on the
collateral portfolio of approximately 1.25%-1.50% with a
volatility of 67%-75%. Recoveries were modelled using a fixed
recovery assumption in the 40% range.
Moody's ratings address only the credit risks associated with the
transaction. Other non-credit risks have not been addressed, but
may have significant effect on yield to investors. Moody's
ratings are subject to revision, suspension or withdrawal at any
time at our absolute discretion. The ratings are expressions of
opinion and not recommendations to purchase, sell or hold
securities.
SPAR EXPRESS ET AL: Court Enters Wind-Order
-------------------------------------------
On September 19, 2008, the Federal Court of Australia entered an
order to wind up the operations of:
-- Spar Express Australia Pty Ltd;
-- ACN 000 329 788 Pty Ltd;
-- Tashko Pty Ltd;
-- Jandt (NSW) Pty Ltd; and
-- Beerfairy Hotels Pty Ltd.
The companies' liquidator is:
Steven Nicols
350 Kent Street, Level 2
Sydney NSW 2000
Website: http://www.bankrupt.com.au
STANILITE PACIFIC: Declares Final Dividend
------------------------------------------
Stanilite Pacific Limited, which is in liquidation, declared the
final dividend on November 20, 2008.
Only creditors who were able to file their proofs of debt by
Nov. 19, 2008, were included in the company's dividend
distribution.
The company's liquidator is:
Ken Rennie
Ernst & Young Chartered Accountants
680 George Street, Level 37
Sydney NSW 2000
Telephone:(02) 9248 5862
SUPER SAVE: Voluntary Chapter 15 Case Summary
---------------------------------------------
Chapter 15 Petitioner: Barry Anthony Taylor
Chapter 15 Debtor: Super Save Superannuation Fund (In Liquidation)
HLB Mann Judd
level 19, 207 Kent Street
Sydney, New South Wales
Australia
Chapter 15 Case No.: 08-12832
Type of Business: The Debtor engages in investment schemes.
Chapter 15 Petition Date: December 12, 2008
Court: Southern District of New York (Manhattan)
Judge: Allan L. Gropper
Chapter 15 Petitioner's Counsel: Andrew T. Solomon, Esq.
asolomon@sandw.com
Sullivan & Worcester LLP
1290 Avenue of the Americas
29th Floor
New York, NY 10104
Tel: (212) 660 3000
Fax: (212) 660 3001
Estimated Assets: US$1 million to US$10 million
Estimated Debts: US$1 million to US$10 million
=========
C H I N A
=========
CHINA CONSTRUCTION: BofA Denies Sale of Stake in Bank
-----------------------------------------------------
Bloomberg News reported that Bank of America Corp. denied a report
that it sold shares in China Construction Bank Corp.
According to Bloomberg News, the Apple Daily newspaper, citing
unnamed sources, reported that Bank of America is selling as many
as 6 billion shares in China Construction Bank at a discount of as
much as 17 percent from the lender's Dec. 12 closing price.
"We have not sold our CCB stake," Bank of America spokesman Robert
Stickler told Bloomberg News in a phone interview, declining to
comment on whether the bank may sell China Construction Bank
shares in the future.
China Construction Bank's Beijing-based spokesman Yu Baoyue
confirmed in an interview with Bloomberg News that the bank has
been told by Bank of America that it isn't planning the sale
outlined by Apple Daily.
Bank of America holds 19.13 percent stake in the Chinese bank,
Bloomberg News discloses.
Fund Raising Plan
As reported in the Troubled Company Reporter-Asia Pacific on Dec.
15, 2008,
Reuters said that according to the head of China Construction
Bank's investment arm, China Construction Bank plans to raise over
US$1.5 billion in private equity and investment funds to invest in
sectors from health care and consumption to aviation.
According to Reuters, Hu Zhanghong, chief executive of CCB
International, told reporters his firm planned to raise a CNY5
billion (US$730 million) health care investment fund, China's
first.
CCB International, Reuters said, will manage the fund jointly with
a U.S. Firm.
Reuters related that the fund will focus on investing in companies
producing medicine and medical equipment and providing medical
services, targeting returns of over 20 percent annually.
Meanwhile, Reuters noted, China Construction also planned to raise
HK$800 million ($103.2 million) via a mutual fund in Hong Kong
that will focus on Chinese consumer stocks listed in the city.
According to the report, Wang Gui Ya, CCB International's general
manager, said the bank will set up a CNY4-5 billion private equity
fund before the end of the year that will target aviation
companies.
About China Construction Bank
The China Construction Bank -- http://www.ccb.cn/-- is one of the
"big four" banks in the People's Republic of China. It was
founded on October 1, 1954, under the name of "People's
Construction Bank of China" and later changed to "China
Construction Bank" on March 26, 1996.
* * *
China Construction Bank continues to carry Moody's 'D-' bank
financial strength rating. Moody's Bank Financial Strength
Ratings (BFSRs) represent Moody's opinion of a bank's intrinsic
safety and soundness and, as such, exclude certain external credit
risks and credit support elements that are addressed by Moody's
Bank Deposit Ratings.
CHINA FISHERY: S&P Changes Outlook to Stable; Affirms B+ Ratings
----------------------------------------------------------------
Standard & Poor's Rating Services said that it had revised its
outlook on China Fishery Group Ltd. to stable from positive. At
the same time, it affirmed the 'B+' long-term corporate credit
rating on the company and the 'B+' issue rating on the senior
unsecured debt guaranteed by China Fishery.
"The outlook revision reflects our expectation that China
Fishery's financial profile is unlikely to improve and therefore
cannot sustain a higher rating level in the next 12 months. The
pressure on the company's financial profile stems from the
company's increasingly tight liquidity position, likely weaker
sales growth in the next 12 months, and higher operational
uncertainty due to its exposure to recent regulatory changes,"
said S&P's credit analyst Lawrence Lu.
S&P believes China Fishery's already limited liquidity flexibility
may become even tighter as global economic conditions worsen,
given a potential increase in inventory turnover days.
S&P expects China Fishery's sales in the next 12 months to be
negatively affected by declining affordability levels. However,
the uncertainty over the company's ability to sustain its current
financial profile is partly offset by its ongoing and well-
executed business expansion in fishmeal operations. China
Fishery's focus on supplying cheaper white fish, such as the
Alaskan pollock and jack mackerel, may provide some protection
against the market downturn. The strong demand for fishmeal
products, due to greater health awareness and shifting dietary
habits, should continue to support China Fishery's future
growth and cash-generating capabilities. EBITDA declined to
US28.7 million in the third quarter of 2008 (ended September) from
US47.9 in the second quarter (ended June), but S&P's views this
decline as atypical, resulting from business disruption during the
Olympics in August and higher fuel costs.
China Fishery's operations remain sensitive to regulatory changes.
In August 2008, the Peruvian government changed its fishing system
from "Olympic" to the "quota" system for its northern waters.
Although management had anticipated such a change, S&P believes
China Fishery's financial performance may be temporarily affected
as the company adjusts to the new fishing system.
The affirmed ratings continue to reflect a level of geographic and
business concentration in terms of catchments area and business
lines. These weaknesses are tempered by China Fishery's strong
growth potential and good financial metrics, as well as some
benefits from its association with its larger parent, Pacific
Andes Holdings Ltd. (not rated).
CHINA PROPERTIES: Weak Liquidity Cues S&P's B+ Corp. Credit Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services said that the 'B+' corporate
credit rating on China Properties Group Ltd. and the 'B+' issue
rating on the company's US$300 million senior unsecured notes will
remain on CreditWatch with negative implications, where they were
placed on Sept. 24, 2008 to reflect the risks surrounding its weak
liquidity.
"The ratings remain on CreditWatch due to China Properties'
potentially substantial near-term repayment needs and its thin
cash position. Uncertainty relates to the maturity of a loan
totaling Chinese renminbi 520 million due in March 2009, but S&P
understands that China Properties is in the process of extending
it," said S&P's credit analyst Bei Fu.
China Properties' tight liquidity position is a result of its
acquisition of new land and a share buyback. The company has
fully paid about RMB1.8 billion for two new projects in Chongqing.
In addition, it has bought more than Hong Kong dollar (HK$) 200
million worth of shares so far in 2008. These activities left the
company with unrestricted cash of less than HK$600 million up to
the end of November. Given the current market conditions and
China Properties' slow sales in recent months, S&P doesn't
believes its current cash position provides a sufficient buffer
for any contingent needs in the future, including the repayment of
the loan due in March 2009.
S&P expects China Properties' financial performance in 2008 to
have weakened, due to the market slowdown and the fact that the
company has only one project for sale. For the first six months
of 2008, the company's sales and EBITDA declined by more than 20%
from the previous corresponding period, and its debt of close to
HK$3 billion (including RMB100 million pledged in cash) was higher
than S&P's full-year forecast. A significant portion of revenue
in the first half of 2008 was contracted sales in 2007. The
company achieved HK$719 million in contracted sales up to the end
of November 2008. S&P expects the full-year EBITDA interest
coverage to remain at more than 3x.
CHINA PROPERTIES: Moody's Cuts Ratings to B2; Outlook Stable
------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family and
unsecured bond ratings of China Properties Group Limited to B2
from B1. The ratings outlook is stable. This concludes the
rating review for downgrade initiated on 25 September 2008.
"The downgrade is driven by Moody's expectation that China
Properties is likely to achieve weaker-than-expected property
sales for 2008 and accordingly post weak cash flow coverage
measures," says Peter Choy, a Moody's Vice President and Senior
Credit Officer, adding "Such an anticipated sales performance
mainly reflects its relatively high concentration on a few select
projects -- as compared to its industry peers -- against the
backdrop of a severe market downturn."
"As indicated, due to its lower property sales, operating cash
flow is expected to weaken materially," says Choy. "Meanwhile the
tight nature of the bank credit market for the property sector has
not improved, translating into a material drop in balance sheet
liquidity."
Nevertheless, the B2 rating is supported by the good quality of
company's project locations, its low debt leverage, as well as
minimal levels of land payments and refinancing pressure in the
next 1-2 years.
The stable outlook reflects the company's near-term adequate
liquidity profile and low debt service requirements. Furthermore,
it has the flexibility to adjust its construction spending
according to the latest developments in demand for its products.
The possibility of a rating upgrade in the near term is limited,
given the challenging character of market conditions. However,
pressure for an upgrade would emerge over time if the company can
(a) demonstrate a track record for achieving its sales targets,
while maintaining its profit margins; (b) secure adequate bank
financing for its projects; (c) successful complete its projects
without cost overruns; and (d) maintain adequate balance sheet
liquidity.
On the other hand, downward rating pressure could emerge if the
company (i) continues to fall short of its target sales; (ii) is
unable to secure bank financing, resulting in delays in its
projects, or (iii) conducts further debt-funded land acquisitions.
Under such scenarios, operating cash flow could stay in a deficit
position and interest coverage could deteriorate with
EBITDA/interest below 1.5 -- 1.8x.
The last rating action was on 25 September 2008 when the ratings
of China Properties were placed under review for possible
downgrade.
The principle methodology applied in rating China Properties is
the rating Methodology on Homebuilding dated December 2004 which
can be found at http://www.moodys.comin the Credit Policy &
Methodologies directory, in the Rating Methodologies subdirectory.
Incorporated in Grand Cayman, China Properties Group Limited was
listed on the Hong Kong Stock Exchange in February 2007 and is
engaged in property investment and development in China.
CITIGROUP INC: To Sell Trust Banking Unit to Mitsubishi UFJ
-----------------------------------------------------------
Takahiko Hyuga at Bloomberg News reports that Citigroup Inc. will
sell its Japanese trust banking unit, NikkoCiti Trust & Banking
Corp., to Mitsubishi UFJ Financial Group Inc. for about JPY25
billion (US$277 million) in cash.
The deal, Bloomberg News relates, is to be completed around
April 1, 2009.
According to Bloomberg News, NikkoCiti Trust, which employs 136
people in Japan, posted a JPY152 million profit for the six months
ended Sept. 30, down from JPY495 million a year earlier.
Mitsubishi UFJ Financial Group, Inc. (MUFG) is a holding company
for The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Mitsubishi UFJ
Trust and Banking Corporation (MUTB), Mitsubishi UFJ Securities
Co., Ltd., and Mitsubishi UFJ NICOS Co., Ltd., (Mitsubishi UFJ
NICOS). The services of the company include commercial banking,
trust banking, credit cards, asset management, leasing and other
financial services. MUTB is a trust bank in Japan, providing
trust and banking services to clients in Japan and the rest of
Asia, as well as in the United States and Europe. MUS provides
underwriting and brokerage of securities, mergers and
acquisitions, derivatives, corporate advisory and securitization
operations. Mitsubishi UFJ NICOS is a credit card company in
Japan that issues credit cards, and provides credit card and other
related services. On October 14, 2008, it acquired a 21% stake in
Morgan Stanley. In November 2008, the company, along with BTMU,
completed the acquisition of UnionBanCal Corp.
About Citigroup
Based in New York, Citigroup Inc. (NYSE: C) --
http://www.citigroup.com-- is organized into four major segments
-- Consumer Banking, Global Cards, Institutional Clients Group,
and Global Wealth Management. Citi had US$2.0 trillion in total
assets on US$1.9 trillion in total liabilities as of Sept. 30,
2008.
As reported in the Troubled Company Reporter on Nov. 25, 2008, the
U.S. government entered into an agreement with Citigroup to
provide a package of guarantees, liquidity access, and capital.
As part of the agreement, the U.S. Treasury and the Federal
Deposit Insurance Corporation will provide protection against the
possibility of unusually large losses on an asset pool of
approximately US$306 billion of loans and securities backed by
residential and commercial real estate and other such assets,
which will remain on Citigroup's balance sheet. As a fee for this
arrangement, Citigroup will issue preferred shares to the Treasury
and FDIC. In addition and if necessary, the Federal Reserve will
backstop residual risk in the asset pool through a non-recourse
loan.
KEY PLASTICS: Financial Woes Cue Chapter 11; Files Prepack Plan
---------------------------------------------------------------
Key Plastics LLC along with its affiliate, Key Plastics Finance
Corp., filed a voluntary petition under Chapter 11 of the United
States Bankruptcy Court for the District of Delaware citing
financial difficulties due to the recent economic downturn in the
automotive industry.
The company said it defaulted under the indenture governing the
11-3/4% senior secured notes due 2013 that resulted in a cross
default under a certain revolving credit facility agreement with
The CIT Group/Business Credit Inc. and Jefferies Finance dated
March 12, 2007. The company further said that it replaced the
facility with a prepetition term loan of $10 million.
In conjunction with the Chapter 11 filing, the company proposes a
joint Chapter 11 prepackaged plan of reorganization to restructure
its existing equity and debts by conversion of its senior secured
debt into equity or retirement.
Under the plan, each holder of series A unit claims will be paid
equal to $474 per series A unit in cash. At its option, holders
will be entitled to receive, either:
-- pro rata share of 65% of the full-diluted new common units
to be issued by the company post-confirmation, which will be
subsequently be contributed to the reorganized Finance Corp.
in turn for an equal percentage of new common stock to be
issued by the reorganized Finance Corp.; or
-- cash equal to 16% of the face value of the holder's senior
notes.
Furthermore, holders of senior notes who elect to receive their
pro rata share of new the company equity in which holders may
subscribe for its pro rata share of no more than 35% of the new
company equity, which will also be subsequently be contributed to
the reorganized Finance Corp. in exchange for an equal percentage
of new Finance Corp. equity.
On the Plan's effective date, 100% of new company equity will be
held by the reorganized Finance Corp. and 100% of new Finance
Corp. equity will be held by former holders of senior notes,
rendering reorganized company as wholly-owned subsidiary of the
reorganized Finance Corp.
According to the company, the plan provides for the payment in
full of allowed (i) administrative expense claims; (ii) priority
tax claims; (iii) claims pursuant to any debt facilities approved
by the Court; (iv) other priority claims; (v) lease rejection
claims; and (vi) general unsecured claims -- including trade
creditor claims. The plan leaves holders of other secured claims
against the Debtors impaired, the company noted.
The company related that on Nov. 12, 2008, it solicited votes on
the plan, wherein holders of senior notes claims and series A unit
claims voted to accept the plan.
The company said that the plan contemplates the reduction of its
outstanding indebtedness by as much as $121.756 million, which
will provide the company with greater liquidity, better
positioning from an operation standpoint ahead.
In addition, the company said Wayzata Investment Partners LLC will
provide up to US$20 million in rights offering to fund the
restructuring, among other things.
The company said it expects that the restructuring will be
completed by January 2009.
Ralph Ralston, President & COO of the company's North American
operations, stated, "In the face of today's economic conditions,
we are pleased to have achieved such strong support for a
consensual restructuring that is beneficial to our employees,
customers, and suppliers by dramatically improving our balance
sheet, eliminating the related debt service obligations, and
enabling continued reinvestment in our products and future
growth."
"This process will give Key Plastics one of the strongest
financial profiles in the industry, and allow us to persevere
through the current industry environment while continuing to
provide exceptional products and services to our customers
worldwide. We look forward to the continued support of Wayzata
and DDJ and their long-term commitment to the business," Mr.
Ralston said.
The company listed assets and debts between US$100 million and
US$500 million in its filing. The company owes US$1.4 million to
BASF Corporation; US$1.4 million to Jing Mei Automotive (USA)
Inc.; and US$478,975 to Basilius Tool Company.
Chief financial officer John Will disclosed that KAC Acquisition
Company owns 100% of Key Plastics LLC common interest; Bank One,
NA, owns 11.9% of Key Plastics LLC series A preferred units; and
Eaton Vance Corp. owns 10.3% of Key Plastic LLC series A
preferred.
About Key Plastic
Headquartered in Northville, Michigan, Key Plastics LLC --
http://www.keyplastics.com/-- supplies plastic components to the
automotive industry. The company has 24 manufacturing facilities
located in the United States, Canada, Mexico, Germany, Portugal,
Spain, the Czech Republic, France, Slovakia, Italy and China.
According to Bloomberg News, the company filed for bankruptcy in
March 23, 2000, in Detroit and emerged a year later under the
ownership of private-equity firm Carlyle, Bloomberg says.
KEY PLASTICS: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Key Plastics LLC
aka Key Plastics Technology, LLC
21700 Haggerty Road, Suite 100
Northville, MI 48167
Bankruptcy Case No.: 08-13326
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
Key Plastics Finance Corp. 08-13324
Related Information: The Debtors supply plastic components to the
automotive industry. The Debtors have 24
manufacturing facilities located in the
United States, Canada, Mexico, Germany,
Portugal, Spain, the Czech Republic, France,
Slovakia, Italy and China.
According to Bloomberg News, the company
filed for bankruptcy in March 23, 2000, in
Detroit and emerged a year later under the
ownership of private-equity firm Carlyle,
Bloomberg says.
See: http://www.keyplastics.com/
Chapter 11 Petition Date: December 15, 2008
Court: District of Delaware (Delaware)
Judge: Mary F. Walrath
Debtors' Counsel: Mark D. Collins, Esq.
collins@RLF.com
Richards Layton & Finger PA
One Rodney Square
P.O. Box 551
Wilmington, DE 19899
Tel: (302) 651-7700
Fax: (302) 651-7701
Estimated Assets: US$100 million to US$500 million
Estimated Debts: US$100 million to US$500 million
The petition was signed by senior vice president and chief
financial officer John Wilson.
The Debtors' Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
BASF Corporation trade US$1,412,113
Attn: John Byrd
100 Campus Drive
Florham Park, NJ 07932
Tel: (248) 641-1820
Fax: (248) 641-7370
Jing Mei Automotive trade US$1,315,844
(USA) Inc.
Attn: Bob Boyd
10415 United Parkway
Schiller Parkway, IL 60176
Tel: (248) 703-7270
Fax: (847) 617-5311
Basilius Tool Company trade US$478,975
Attn: Scott Basilius
4338 South Avenue
Toledo, OH 43615
Tel: (419) 536-5810
Fax: (419) 536-0391
Phillips Sumika trade US$353,913
Rhodia Polyamide Corp. trade US$167,065
Zatkoff Seals and Packings trade US$125,787
Polyone Corporation trade US$124,496
Rhetech Inc. trade US$124,331
Perot Systems trade US$109,810
Tek-Cast Inc. trade US$104,673
BDO Seidman LLP trade US$101,282
DTE Energy trade US$90,377
Commercial Spring and trade US$83,568
Tool
Deco' Plate trade US$72,123
Dynacast Canada trade US$68,849
Dixon Tool Co. Ltd. trade US$68,800
Luck Marr trade US$63,032
Madison Tool Inc. trade US$63,023
Packaging Specialties trade US$57,400
Specialty Industries Inc. trade US$49,841
Elite Welding & Fabricating trade US$49,235
Rich Industries Inc. trade US$47,689
American Electric Power trade US$43,208
LyondellBasell Advanced trade US$41,702
Epic Equipment & Engineering trade US$41,400
Lightning Components & Design trade US$39,385
Washington Penn Plastic Co. trade US$38,759
JTEKT Automotive trade US$38,397
Fastco Industries Inc. trade US$37,075
Foster Electric America trade US$35,120
LAIRD PLC: To Cut Global Workforce by 40%, Shutter 3 U.S. Plants
----------------------------------------------------------------
Laird PLC disclosed plans to reduce its direct labor force by
about 40%, or some 4,500 employees -- including the normal
seasonal reduction at year end -- and direct and indirect overhead
by approximately 14%, or some 500 employees, in the fourth quarter
of 2008.
Laird's manufacturing facility in Hungary is in the process of
being closed, and three of its facilities in the U.S. will be
closed or downsized significantly, with production from these
sites transferred to Mexico and China.
Laird said the plant closures will lead to further labor and
overhead reductions during the first half of 2009. The actions
will result in exceptional charges of up to GBP20 million being
incurred in 2008, of which some GBP14 million will be cash and the
remainder asset write-downs. Annualized net benefits will be at
least GBP12 million, being realized progressively during 2009.
"We currently expect that our underlying performance in 2008 will
be within expectations. As anticipated in our Trading Update on 18
November, we have seen an acceleration of the slowdown in demand
for our products across virtually all of our market sectors in
November. This has continued into December, with de-stocking in
the global supply chain. As a result, we expect revenue at
constant exchange rates in the fourth quarter of 2008 to be 25% to
30% below that in the same period of 2007, although currency
movements will mitigate considerably the reduction in revenue when
expressed in Sterling," the company said in a press release.
"The flexibility of our business has allowed us to respond rapidly
to the slowdown.
"For planning purposes we are assuming that the current de-
stocking lasts through at least the first quarter of 2009, and
that there will be no market recovery during 2009. Our planning
assumption is that global unit handset volumes will decline by 10%
from 2008 levels. We expect that the cost reduction measures that
we are implementing, lower commodity prices, greater penetration
of our products, and the breadth of our business activities, will
underpin our performance in 2009.
"Financially, Laird remains strong with low financial gearing and
high single digit interest cover in 2008. Our revolving credit
facilities run to 2012 and our Private Placement to 2016. While
the current downturn persists, we are able to maintain our
investment in enhancing our technical and operational
capabilities, and expect to increase our penetration at key
customers as well as increase the extent of our vertical
integration. These actions, together with our ability to
respond rapidly to any economic recovery, will benefit the Company
when markets improve."
London, U.K.-based Laird PLC designs and supplies performance-
critical components and systems for wireless and other advanced
electronic applications. It has operations in North America,
Europe and across Asia.
MANDRA FORESTRY: Moody's Junks Corp. Family Rating; Outlook Neg.
----------------------------------------------------------------
Moody's Investors Service has downgraded to Caa1 from B3 the
corporate family rating of Mandra Forestry Holdings Ltd (Mandra)
and the senior unsecured rating of debt issued by Mandra Forestry
Finance Ltd and guaranteed by Mandra. The outlook for the ratings
is negative.
"The downgrade has been prompted by Mandra's tight liquidity
profile against the backdrop of its periodic coupon payments,"
says Ken Chan, a Moody's Vice President, adding, "The company's
delayed plan for harvesting its standing timber has resulted in an
insignificant cash flow generation."
"It had an onshore cash balance of US$15 million as of end-
November 2008, a level which is tight when compared with its
US$12m semi-annual coupon payment due in May 2009," says Chan,
also Moody's lead analyst for Mandra, adding, "We also note that
there is a US$14 million of standing timber deposit which could be
recovered for additional liquidity."
"Its balance sheet liquidity continues to undergo depletion with
reported negative operating cash flow of US$16.5 million in the
first 9 months of 2008, while capex investment was US$9.8
million," comments Ken.
Mandra's plan to start timber harvesting in 2009 also involves
execution risks. While the company can rely on US$25 million in
secured credit facilities available from domestic banks for
additional liquidity, without meaningful cash flow generation in
the near term, it may have difficulties in servicing its next few
coupon payments.
The negative outlook for the ratings reflects the company's tight
liquidity situation.
The possibility of a ratings upgrade is remote, given the current
negative outlook and the tight liquidity profile.
On the other hand, if the company fails to ramp up its cash flow
generation and secure appropriate external financing, thereby
further weakening its balance sheet liquidity, then downward
ratings pressure would emerge.
Mandra's ratings were assigned by evaluating factors we believe
are relevant to its credit profile, such as i) its business risk
and competitive position versus others within its industry, ii)
its capital structure and level of financial risk, iii) its
projected performance over the near to intermediate term, and iv)
management's track record and tolerance for risk.
These attributes were compared against other issuers both within
and outside of Mandra's core industry and Mandra's ratings are
believed to be comparable to those of other issuers of similar
credit risk.
The last rating action with respect to Mandra was on June 13, 2006
when its ratings were downgraded to B3 from B1, with a negative
outlook.
Mandra Forestry Holdings Ltd is a holding company in which Mandra
Capital holds 75%, Sino-Forest 15% and Morgan Stanley 10%. It
engages in forestry plantation activities in China's Anhui and
surrounding provinces.
SHIMAO PROPERTY: Moody's Cuts CFR to Ba3; Outlook Negative
----------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Shimao Property Holdings Limited to Ba3 from Ba2. At
the same time, Moody's has downgraded the company's senior
unsecured bond rating to B1 from Ba2 due to subordination risk.
The outlook on all ratings is negative.
This concludes the rating review initiated on October 3, 2008.
"The downgrade has been driven mainly by the high probability that
Shimao's sales performance will be weaker than expected because of
the softening property market," says Peter Choy, a Moody's Vice
President and Senior Credit Officer, adding that, "Such under
performance will further pressure its near to medium term
financial and liquidity profiles while the operating environment
remains challenging."
"Moreover, Shimao's headroom for covenant compliance is expected
to remain tight for its bank loans thereby affecting its funding
stability," comments Mr. Choy.
"Despite the Chinese authorities' gradual loosening of regulatory
measures, Moody's expects Shimao to face challenge in raising
committed new financing to support its operations and funding
requirements," adds Mr. Choy.
While Shimao may dispose of some of its assets to improve
liquidity, this may take time to materialize given the tight
credit environment.
At the same time, Shimao's Ba3 rating is supported by its well-
located projects in China's economically strong provinces, low
land cost, earnings from investment properties, and moderate debt
leverage measured by debt/total capitalization at around 35 -45%.
With tight offshore bank financing, Shimao has relied on onshore
secured bank loans. This has resulted in secured bank debt
increasing to around 15 - 20% of its total assets, which raises
the risk of legal subordination. Accordingly, its senior
unsecured bond rating has been further downgraded by one notch to
B1.
The negative outlook reflects the vulnerability of the company's
bank loans given the tight headroom regarding its covenants and
the challenge it faces to improve its sales performance over the
next 1 -- 2 years.
The likelihood of upward rating pressure is limited in the near
term given the negative outlook. The ratings may return to stable
if Shimao can (a) secure appropriate banking financing for its
investment and development projects; (b) improve headroom on
covenant compliance; and (c) strengthen its balance sheet
liquidity and/or back-up liquidity arrangement.
The rating could be downgraded if Shimao (a) continues to fall
short of its target sales; (b) triggers a breach of its financial
covenants; (c) experiences further weakening of its balance sheet
liquidity; and/or (iv) pursues additional aggressive debt-funded
land acquisitions. Under such conditions, Shimao's operating cash
flow would continue to be in deficit with interest coverage
deteriorating to EBITDA/interest below 2.5 -- 3.5x.
Moody's last rating action was taken on October 3, 2008 when the
ratings of Shimao were placed under review for possible downgrade.
The principle methodology applied in rating China Properties is
the rating Methodology on Homebuilding dated December 2004 which
can be found at http://www.moodys.comin the Credit Policy &
Methodologies directory, in the Rating Methodologies subdirectory.
Shimao Property Holdings Ltd is incorporated in Grand Cayman and
was listed on the Hong Kong Stock Exchange in July 2006. It has 33
projects in China mainly located in Shanghai, Beijing, the Yangtze
River Delta and the Bohai Rim.
===============
H O N G K O N G
===============
ABLE REACH: Sung Mi Yin Ceases to Act as Liquidator
---------------------------------------------------
On December 13, 2008, Sung Mi Yin cease to act as liquidator of
Able Reach Limited.
The company's former Liquidator can be reached at:
Sung Mi Yin
Ritz Plaza, Suite No. A, 11th Floor
122 Austin Road
Tsimshatsui, Kowloon
Hong Kong
CHUNG SHING: Placed Under Voluntary Liquidation
-----------------------------------------------
At an extraordinary general meeting held on December 3, 2008, the
members of Chung Shing Finance Company Limited resolved to
voluntarily liquidate the company's business.
The company's liquidator is:
Yeung Kwok Leung
China Insurance Group Building
Rooms 201-3, 2nd Floor
141 Des Voeux Road Central
Hong Kong
CITIC RESOURCES: Moody's Puts Ba2 CFR on Review for Downgrade
-------------------------------------------------------------
Moody's Investors Service has put on review for possible downgrade
the Ba2 corporate family rating of CITIC Resources Holdings Ltd
and the Ba2 rating of the US$1 billion 7-year unsecured senior
notes issued by CITIC Resources Finance (2007) Ltd and guaranteed
by CITIC Resources.
"The rating action reflects heightened downside risks to CITIC
Resources' business and financial profiles, in view of the lower-
than-expected production at its Karazhanbas oil field, as well as
softer conditions in the commodities market," says Renee Lam, a
Moody's Vice President and Senior Analyst.
"Moody's is also concerned with the company's ability to comply
with the financial covenants under its borrowing documents in
FY09, given a potential weakening in its financial performance,"
adds Ms. Lam.
The Karazhanbas oil field in Kazakhstan is CITIC Resources' major
upstream oil asset. Despite the year-to-date gradual increase in
daily production level to 36,000 bbls/day at the end of November
2008, this is still short of the company's original target of
60,000 bbls/day and subsequent revised target of 40,000 bbls/day.
Moody's is concerned over its ability to rapidly ramp up
production and thus strengthen cash flow - factors which are
factored into the current rating.
Previously, the strong rises in average oil prices in 2008 had
offset the negative financial impact of lower-than-expected
realized volume sales and above-budget lifting costs. However,
recent sharp drops in prices, without a commensurate decline in
operating expenses, has removed this cushion.
CITIC Resources' other businesses, including aluminium smelting,
coal and manganese mining, as well as the import and export of
commodities, are also expected to face reductions in either demand
or price.
On the other hand, partially mitigating these adverse developments
is the fact that major capital expenditures for the Karazhanbas
and Hainan-Yuedong fields have been substantially pre-funded by
committed available debt, equity issuances and internal cash
flows. In addition, scheduled debt maturing before Sep 2009 -- and
amounting to about HK$1 billion -- has been substantially
refinanced.
CITIC Resources' Ba2 rating continues to incorporate a two-notch
uplift from the stand-alone B1 rating, based on expected support
from CITIC Group (Baa2/negative), its 54.02% owned parent.
Moody's review will focus on measures taken by CITIC Resources to
1) uplift its oil production and reserve replacements, 2) control
costs, and 3) revise its cash outlays in view of the challenging
nature of operating conditions. Moody's will also assess the
potential impact to CITIC Resources' liquidity position, including
compliance with its financial covenants, in case of an earnings
downturn over the next 12 months.
The last rating action with respect to CITIC Resources was on
October 22, 2008 when it was affirmed at Ba2/stable, in
conjunction with Moody's rating actions on other CITIC Group
companies following CITIC Pacific's (Ba2; on review, direction
uncertain) posting of substantial losses from leveraged foreign
exchange contracts.
The principle methodology used in rating CITIC Resources was the
Global Independent Exploration and Production (E&P) Industry
rating methodology, which can be found at http://www.moodys.comin
the Credit Policy & Methodology directory, in the Ratings
Methodologies subdirectory. Other methodologies and factors that
may have been considered in the process of rating CITIC Resources
can also be found in the Credit Policy & Methodology directory.
CITIC Resources, based in Hong Kong, is a natural resources and
energy investment holding company with interests in aluminium
smelting, coal, oil, manganese, and the import and export of
commodities. The company serves as the principal natural resources
and energy arm of its parent, CITIC Group.
CITIC Resources' acquisition of a 50% equity interest in CITIC
Canada Petroleum Ltd (formerly Nations Energy Company Ltd.) has
skewed its profile towards the oil sector.
FAIRLITE INDUSTRIES: Appoints Lee Chi Fan as Liquidator
-------------------------------------------------------
At an extraordinary general meeting held on Nov. 21, 2008, the
members of Fairlite Industries Limited appointed Lee Chi Fan as
the company's liquidator.
The Liquidator can be reached at:
Lee Chi Fan
Golden Centre, Unit 403, 4th Floor
No. 188 Des Voeux Road Central
Hong Kong
FLOWERCENTER LIMITED: Creditors' Proofs of Debt Due on January 15
-----------------------------------------------------------------
The creditors of Flowercenter Limited are required to file their
proofs of debt by January 15, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on December 5, 2008.
The company's liquidator is:
Au Ping Yun
Golden Centre, Unit 3, 20th Floor
188 Des Voeux Road Central
Hong Kong
GLORY ROUTE: Creditors' Proofs of Debt Due on January 12
--------------------------------------------------------
The creditors of Glory Route Limited are required to file their
proofs of debt by January 12, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Nov. 30, 2008.
The company's liquidators are:
Messrs. Leung Moon Chuen
Wong Kai Wing
World Wide House, Room 1503
19 Des Voeux Road Central
Hong Kong
GLOBAL WORKS: Members' Final Meeting Set for January 13
-------------------------------------------------------
The members of Global Works Limited will meet on January 13, 2008,
at 10:00 a.m., at Level 28 of Three Pacific Place, in 1 Queen's
Road East, Hong Kong.
At the meeting, Ying Hing Chiu and Chung Miu Yin, Diana, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.
KERRY INVESTMENTS: Creditors' Proofs of Debt Due on January 12
--------------------------------------------------------------
The creditors of Kerry Investments Limited are required to file
their proofs of debt by January 12, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Dec. 1, 2008.
The company's liquidator is:
Sung Mi Yin
Ritz Plazam Suite No. A, 11th Floor
122 Austin Road
Tsimshatsui, Kowloon
Hong Kong
MCDREEDY INVESTMENTS: Creditors' Proofs of Debt Due on January 13
-----------------------------------------------------------------
The creditors of Mcdreedy Investments Limited are required to file
their proofs of debt by January 13, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Dec. 5, 2008.
The company's liquidator is:
Leung Chi Kong, Edmond
3 Lockhart Road, 12th Floor
Wanchai, Hong Kong
SKY BRAVE: Creditors' Meeting Set for December 20
-------------------------------------------------
The creditors of Sky Brave Limited will hold a meeting on Dec. 20,
2008, at 10:00 a.m., to appoint a liquidator and to consider
further matters relevant to the creditors' voluntary wind-up. The
meeting will be held at Founder's Room, 3rd Floor of South Tower,
in YMCA, Hong Kong.
The company commenced liquidation proceedings on Nov. 28, 2008.
Chan Kin Hang is the company's liquidator.
TAI YAT: Creditors' Meeting Set for December 24
-----------------------------------------------
The creditors of Tai Yat Motor Eng Co., Limited will hold a
meeting on December 24, 2008, at 10:00 a.m., to appoint a
liquidator and to consider further matters relevant to the
creditors' voluntary wind-up.
The company commenced liquidation proceedings on Dec. 2, 2008.
Chan Kin Hang, Danvil is the company's liquidator.
WINVIEW (HK): Creditors' Proofs of Debt Due on January 13
---------------------------------------------------------
The creditors of Winview (HK) Limited are required to file their
proofs of debt by January 13, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Dec. 5, 2008.
The company's liquidator is:
Fong Man Lung
Villa Veneto, Flat A, 22nd Floor
3 Kotewall Road
Hong Kong
=========
I N D I A
=========
GENERAL MOTORS: Lets GMAC Defer US$1.5B Payment Until Dec. 30
-------------------------------------------------------------
GMAC LLC disclosed in a regulatory filing with the Securities and
Exchange Commission that as a result of the change in payment
terms, GMAC will be able to defer payment until Dec. 30, 2008, of
up to US$1.5 billion in cash due to General Motors Corporation.
During the shipping period GM will have a security interest in the
financed vehicles.
On Dec. 9, 2008, GM and GMAC LLC agreed on a temporary basis to
adjust GMAC's terms for making advance payments to GM for
wholesale financing of vehicles sold to GM dealers. GM typically
has an increase in its inventory levels in advance of the year-end
shut down and this adjustment will help finance purchases of this
inventory.
Ordinarily, GMAC pays GM the invoice amount for a vehicle shipped
by GM to a GMAC financed dealer on the first business day after
the shipping date. Beginning on Dec. 9, 2008, GMAC will be
obligated to pay GM the invoice amount when the amounts are due
from dealers.
As reported by the Troubled Company Reporter on Dec. 11, auto
lender GMAC and its home mortgage-making subsidiary Residential
Capital LLC are negotiating with bondholders over changes in the
exchange offers announced in November. Less than 25% of the debt
was tendered, according to GMAC. The company said 75% is required
to complete the transaction and enable becoming a bank holding
company.
About GMAC LLC
GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors
Acceptance Corporation, is a global, diversified financial
services company that operates in approximately 40 countries in
automotive finance, real estate finance, insurance and other
commercial businesses. GMAC was established in 1919 and employs
approximately 26,700 people worldwide.
GMAC Financial Services is in turn wholly owned by GMAC LLC.
Cerberus Capital Management LP led a group of investors that
bought a 51% stake in GMAC LLC from General Motors Corp. in
December 2006 for $14 billion.
For three months ended Sept. 30, 2008, the company reported net
loss of $2.5 billion compared to net loss of $1.5 billion for the
same period in the previous year.
For nine months ended Sept. 30, 2008, the company incurred net
loss of US$5.5 billion compared to $1.6 billion for the same
period in the previous year.
At Sept. 30, 2008, the company's balance sheet showed total assets
of US$211.3 billion, total liabilities of US$202.0 billion and
members' equity of about US$9.3 billion.
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.
TATA MOTORS: S&P Downgrades Corporate Credit Rating to 'BB-'
------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
corporate credit rating on India-based automaker Tata Motors Ltd.
to 'BB-' from 'BB' and placed it on CreditWatch with negative
implications. At the same time, S&P lowered its issue rating on
the company's senior unsecured notes to 'BB-' from 'BB' and also
placed the rating on CreditWatch with negative implications.
"We've downgraded Tata Motors and placed the rating on CreditWatch
negative because of the faster-than-expected deterioration in the
automobile market conditions," said S&P's credit analyst Mehul
Sukkawala.
In November 2008, Tata Motor's vehicle sales in India declined 30%
compared with the same month last year. This was a much higher
decline than expected and followed a 20% decline in sales in the
previous month. In addition, Jaguar and Land Rover has seen
demand slow rapidly in the U.S. and Europe, its two key markets.
This is likely to have a material adverse impact on Tata Motors'
financial profile, which has been aggressive since its acquisition
of JLR in April 2008.
To resolve the CreditWatch status within the next three months,
Standard & Poor's will seek updated information on Tata Motors'
business plan. This will also help S&P assess the likely impact
on the company's financial position as the challenging capital
market environment is likely to be sustained for at least the next
year.
=========
J A P A N
=========
AKEBONO BRAKE: Would Lose the Most if GM or Chrysler Go Bankrupt
----------------------------------------------------------------
Akebono Brake Industry Co. and Takata Corp. would lose the most
among Japan's auto parts suppliers should either General Motors
Corp. or Chrysler LLC declare bankruptcy, Bloomberg News reports
citing Moody's Japan K.K.
Moody's Japan analyst Jun Sakurabayashi told Bloomberg News the
companies get at least 20 percent of sales from Detroit automakers
putting them the most at risk from a collapse by a U.S. carmaker
among the six Japanese suppliers covered by the credit-rating
company.
The failure of the U.S. Senate to pass a US$14 billion aid package
for General Motors and Chrysler last week could push the
automakers into bankruptcy which could
severely affect suppliers including Akebono and Takata.
However, Bloomberg News says that according to Mr. Sakurabayashi,
both Akebono and Takata "will be able to ride out the storm, but
it's still difficult to say what kind of shape they'll be in when
the storm dies down."
"In the short term, this does increase their risk profile.
However, they both have ample liquidity," Mr. Sakurabayashi noted.
Headquartered in Tokyo, Japan, Akebono Brake Industry Co Ltd
(TYO:7238) -- http://www.akebono-brake.co.jp/-- is engaged in the
manufacture and sale of automotive and industrial brakes and train
components. The Company offers drum brakes, disc brakes, disc
pads, break lining products, brake assembly products, break
components, rail vehicle parts and others. The Company is also
engaged in the research and development of related businesses, as
well as the provision of logistics services. The Company has 33
subsidiaries and three associated companies.
BTMU: Completes System Integration
----------------------------------
The Japan Times reported that the Bank of Tokyo-Mitsubishi UFJ has
integrated its computer systems at all 670 branches with the last
115 outlets formerly operated by UFJ Bank, one of its predecessor
firms.
BTMU, the report relates, used its predecessors' computer systems
even after the merger.
The last installation at branches follows similar moves since
July, Japan Times notes.
BTMU was formed under the merger of Bank of Tokyo-Mitsubishi and
UFJ Bank in January 2006.
Based in Japan, Bank of Tokyo-Mitsubishi UFJ, Ltd. --
http://www.bk.mufg.jp/index.html-- mainly engages in the banking
business. The Bank is involved in the banking business, including
deposits, foreign exchange and others; credit card business, as
well as the provision of other financial services such as leasing,
security brokerage, investment trust, life insurance and housing
loans. Through subsidiaries and associated companies, the Bank is
also engaged in the commercial banking, investment, consumer
banking, credit guarantee, online banking institution research,
defined contribution pension operation and management, venture
investment, as well as investment trust evaluation and commission.
The Bank has 165 subsidiaries and 48 associated companies.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
November 6, 2008, Fitch Ratings affirmed Bank of Tokyo-Mitsubishi
UFJ's (BTMU) and Mitsubishi UFJ Trust and Banking Corporation's
(MUTB) individual ratings at 'B' following the announcement by
parent Mitsubishi UFJ Financial Group (MUFG) that it plans to
issue JPY390 billion of preferred stocks and up to JPY600 billion
of common shares.
MERRILL LYNCH: To Be Delisted in TSE on December 25
---------------------------------------------------
Merrill Lynch & Co. Inc. said Monday it will be delisted from the
Tokyo Stock Exchange on December 25, 2008, Japan Today reports
citing Kyodo News.
The move, Japan Today says, is in line with the company's plan to
become a wholly owned subsidiary of Bank of America Corp. on
Jan. 1, 2009.
Merrill Lynch & Co. Inc. -- http://www.ml.com/-- is a wealth
management, capital markets and advisory companies with offices in
40 countries and territories. As an investment bank, it is a
leading global trader and underwriter of securities and
derivatives across a broad range of asset classes and serves as a
strategic advisor to corporations, governments, institutions and
individuals worldwide. Merrill Lynch owns approximately half of
BlackRock, one of the world's largest publicly traded investment
management companies with more than $1 trillion in assets under
management. Merrill Lynch's operations are organized into two
business segments: Global Markets and Investment Banking (GMI) and
Global Wealth Management (GWM). GMI provides service global
markets and origination products and services to corporate,
institutional, and government clients around the world. GWM
creates and distributes investment products and services for
individuals, small- and mid-size businesses, and employee benefit
plans.
* * *
As reported by the Troubled Company Reporter, Aaaron Lucchetti and
Jessica Papini at The Wall Street Journal related that Merrill
Lynch & Co.'s third quarter net loss reflected badly the bank was
hurting when it agreed to sell itself to Bank of America Corp. A
TCR report on Sept. 15, 2008, said BofA will acquire Merrill Lynch
for $44 billion.
Merrill Lynch disclosed a net loss from continuing operations for
the third quarter of 2008 of $5.1 billion, compared with a net
loss from continuing operations of $2.4 billion for the third
quarter of 2007. Merrill Lynch's net loss for the third quarter
of 2008 was $5.2 billion, compared with a net loss of $2.2
billion, for the year-ago quarter.
According to WSJ, Merrill Lynch's third-quarter loss was its fifth
straight quarter in the red and would have been even worse without
a $4.3 billion pretax gain on the sale of its stake in Bloomberg
LP and a gain of $2.8 billion under mark-to-market accounting
rules from the deteriorating market value of Merrill's own debt.
According to WSJ, Merrill Lynch's CEO John Thain said that
persistent losses in the credit markets and the worsening economic
environment "only reinforced" the logic of selling to Bank of
America. Merrill Lynch shareholders will vote on the deal in
November, and the sale will close by year-end, WSJ stated.
SPANSION INC: Fitch Sees Likely Default, Junks Ratings on $1B Debt
------------------------------------------------------------------
Fitch Ratings has downgraded these ratings for Spansion Inc.:
-- Issuer Default Rating) to 'CCC' from 'B-';
-- $175 million senior secured revolving credit facility (RCF)
due 2010 to 'CCC+/RR3' from 'B/RR3';
-- $625 million senior secured floating rating notes due 2013 to
'CCC+/RR3' from 'B/RR3';
-- $225 million of 11.25% senior unsecured notes due 2016 to
'CC/RR6' from 'CCC/RR6';
-- $207 million of 2.25% convertible senior subordinated
debentures due 2016 to 'CC/RR6' from 'CCC-/RR6'.
The Rating Outlook is Negative. Approximately $1.3 billion of
debt securities are affected by Fitch's actions.
The downgrade and Negative Rating Outlook reflect Fitch's belief
that there is a real possibility Spansion will default over the
near-term, due to a combination of a challenging macroeconomic
environment and the company's weak liquidity position. Fitch
believes Spansion's survival over the next 12 months will depend
upon a combination of better than expected demand and pricing
environment, ability to renew the RCF in Japan, obtain a line of
credit related to the ARS settlement, and asset sales.
Fitch expects double digit revenue decline for Spansion in 2009,
driven by ongoing pricing pressures that will be exacerbated by
meaningfully lower consumer spending on electronics over the near-
term. In particular, Fitch expects mobile phone units and
automotive electronics, end markets representing well over half of
Spansion's unit shipments, to decline meaningfully in 2009. The
resultant significantly lower gross profits will drive negative
free cash flow in 2009, despite the company's aggressive cost
cuts, including slashing discretionary capital spending.
This anticipated cash usage will erode Spansion's already weak
liquidity, which as of Sept. 28, 2008 was supported by
approximately $152 million of cash and cash equivalents and
approximately $100 million of availability under various credit
facilities. The company also has approximately $125 million of
debt amortization and approximately $60 million due under capital
leases through the end of 2009. Furthermore, as of Sept. 28,
2008, approximately $75 million was outstanding under the
company's Spansion Japan revolving credit facility, expiring in
December 2009. This facility comprises approximately $50 million
of the aforementioned $100 million of the company's available
credit, and the terms and conditions of the related credit
agreement provide for annual renewal. In addition, Spansion has
approximately $38.4 million available under the U.S. RCF.
However, Fitch expects availability will be reduced by the
facility's borrowing base roughly commensurate with anticipated
sales declines.
Cash balances exclude approximately $107 million of auction rate
securities classified as marketable securities that Fitch
considers illiquid at present. However, the ARS portfolio could
provide additional liquidity, as the company has the opportunity
to participate in a settlement with UBS providing for the
repurchase of these securities beginning in June 2010. Spansion
is in discussions with lenders regarding a line of credit against
the anticipated settlement of up to 75% of market value of the ARS
portfolio.
Fitch believes further negative rating actions could be driven by:
faster than anticipated erosion of cash balances, driven by weaker
than expected operating results; or the company's inability to
bolster liquidity via refinancing the RCF in Japan, securing the
ARS-related line of credit, or selling assets.
The ratings could be stabilized if: operating results meaningfully
outperform Fitch's current expectations, resulting in at worst
modest cumulative cash burn through at least the end of 2009; and
the company successfully renews its RCF in Japan, obtains the ARS-
related funding, and receives meaningful proceeds from asset
sales.
Total debt as of Sept. 30, 2008 was approximately $1.6 billion and
consisted primarily of: i) approximately $272 million outstanding
under Spansion Japan's, a wholly-owned subsidiary of Spansion
Inc., senior secured credit facility expiring Dec. 16, 2010; ii)
approximately $55 million outstanding under Spansion Inc.'s
$175 million senior secured RCF expiring Sept. 19, 2010, the
availability of which has been reduced by a combination of a lower
borrowing base and $35 million due to EBITDA levels falling below
prescribed minimum levels; iii) approximately $75 million
outstanding under Spansion Japan's senior secured RCF expiring
Dec. 28, 2009; iv) approximately $625 million of floating rate
senior secured notes due 2013; v) approximately $225 million of
11.25% senior unsecured notes due 2016; vi) $207 million of 2.25%
exchangeable senior subordinated debentures due 2016; and vii)
approximately $80 million of other debt, including capital leases.
The Recovery Ratings and notching reflect Fitch's expectation that
Spansion's enterprise value, and hence recovery rates for its
creditors, will be maximized as a going concern rather than as in
liquidation under a distressed scenario, although the difference
between the two continues to shrink. Fitch's analysis assumes
Spansion ability to draw against its bank credit facilities will
remain constrained by covenants, reducing availability under its
U.S. RCF by $35 million due to EBITDA falling below prescribed
levels, as well as the current borrowing base. Fitch has reduced
the discount to operating EBITDA (in estimating distressed
operating EBITDA)to 0% from 25% due to Fitch's expectations that
Spansion's profitability will decline meaningfully in the fourth
quarter, resulting in an already distressed operating EBITDA
amount of approximately $210 million for the full fiscal year of
2008.
Fitch believes $800 million of rated senior secured debt,
including $625 million of senior secured floating rate notes and a
fully drawn $175 million U.S. revolving bank credit facility, will
recover 51%-70% in a reorganization scenario, resulting in a 'RR3'
recovery rating. A waterfall analysis provides 0% recovery for
the approximately $225 million of rated senior unsecured debt and
$207 million of senior subordinated notes, both resulting in a
recovery rating of 'RR6'.
TAKATA CORP: GM or Chrysler Bankruptcy Could Severely Affect Biz
----------------------------------------------------------------
Takata Corp. and Akebono Brake Industry Co. would lose the most
among Japan's auto parts suppliers should either General Motors
Corp. or Chrysler LLC declare bankruptcy, Bloomberg News reports
citing Moody's Japan K.K.
Moody's Japan analyst Jun Sakurabayashi told Bloomberg News the
companies get at least 20 percent of sales from Detroit automakers
putting them the most at risk from a collapse by a U.S. carmaker
among the six Japanese suppliers covered by the credit-rating
company.
The failure of the U.S. Senate to pass a US$14 billion aid package
for General Motors and Chrysler last week could push both
automakers into bankruptcy which could then severely affect their
suppliers including Takata and Akebono.
However, Bloomberg News says that according to Mr. Sakurabayashi,
both Akebono and Takata "will be able to ride out the storm, but
it's still difficult to say what kind of shape they'll be in when
the storm dies down."
"In the short term, this does increase their risk profile.
However, they both have ample liquidity," Mr. Sakurabayashi noted.
Headquartered in Tokyo, Japan, Takata Corporation (TYO:7312) --
http://www.takata.com/company/-- is mainly engaged in the
development, manufacture and sale of safety products for
automobiles. The Company offers seatbelts, airbags, full harness
seat belts, steering wheels, child seats and trim parts, among
others. The Company has 49 subsidiaries and one associated
company located in Japan, the United States, Holland, Germany,
Poland, Romania, Singapore, Korea, China and other countries.
=========
K O R E A
=========
SAMSUNG ELECTRONICS: May Post First Quarterly Loss in 8 Yrs.
------------------------------------------------------------
Samsung Electronics is headed for its first quarterly loss in
eight years, Jin Hyun-joo at The Korean Herald reports citing an
analyst.
The Korean Herald relates this would be the first time that
Samsung has posted a quarterly loss since it started to announce
its quarterly earnings in 2000.
According to the report, Woori Investment & Securities forecast
Samsung would post an operating loss of KRW242.4 billion in the
fourth quarter, and widen the loss to KRW347.4 billion in the
first quarter of 2009.
"The biggest reason for the loss is the decline in sales prices
for all products, caused by sluggish demand," the Korean Herald
quoted Park Young-joo, an analyst at Woori, as saying.
Meanwhile, the Korean Herald adds, KB Investment & Securities
predicted Samsung would post KRW261 billion in operating losses in
the October to December period, saying all of Samsung's four
units, except for the telecommunications division, would suffer a
deficit.
Samsung Electronics Co. Ltd. -- http://www.samsung.com/sec/-- is
a Korea-based company engaged in the provision of consumer
electronics, communication products, semiconductor products and
home appliances. The Company operates its business through five
divisions. Its digital media division offers televisions (TVs),
monitors, computers, printers, moving picture experts group audio
layer 3 (MP3) players, digital set top boxes and others. Its
communication division provides mobile phones, key phones, network
systems and others. Its semiconductor division offers memory
chips, system large scale integrated circuits (LSICs), hard disk
drives (HDDs) and others. Its LCD division offers thin film
transistor (TFT) LCD modules and others. Its home appliances
division provides air conditioners, refrigerators, washing
machines, microwave ovens and others. The Company established two
subsidiaries: China-based wholly owned subsidiary Suzhou Samsung
Electronics Export on July 24, 2008, and SCOMMTECH Japan on
August 19, 2008.
* KOREA: Gov't. to Invest KRW1.65 Tril. in 3 State-Run Banks
------------------------------------------------------------
Lee Joon-seung at Yonhap News Agency reported that the government
will invest KRW1.65 trillion (US$1.24 billion) in three state-run
lenders to facilitate corporate loans and support export
transactions.
According to Yonhap, the Ministry of Strategy and Finance said the
capital injection will improve the capital adequacy ratio of Korea
Development Bank (KDB), Export-Import Bank of Korea (Korea
Eximbank) and Industrial Bank of Korea (IBK).
Yonhap relates that KDB and IBK will received KRW500 billion each
and Korea Eximbank will get KRW650 billion.
Improvement in capital adequacy, Yonhap notes, will allow these
banks to loan more money to small- and medium- size enterprises
(SMEs) and help exporters who are hard pressed to get funds
following the U.S. financial crisis and a general downturn in the
global economy.
===========
K U W A I T
===========
GLOBAL INVESTMENT: Fitch Junks Long-Term IDR; Watch Negative
------------------------------------------------------------
Fitch Ratings has downgraded Kuwait-based Global Investment
House's (Global) Long-term Issuer Default Rating (IDR) to 'C' from
'BBB', Short-term IDR to 'C' from 'F3', and Individual rating to
'E' from 'C'. Global's Support rating is affirmed at '5' and the
Support Rating Floor is affirmed at 'No Floor'. The Long- and
Short-term IDRs and Individual rating are placed on Rating Watch
Negative (RWN).
In addition, Fitch has downgraded Global's Long-term local
currency IDR to 'C' from 'BBB' and the expected rating on its
KWD50 million fixed/floating Long-term local currency bond to 'CC'
from 'BBB' and assigned a Recovery Rating of 'RR4'. The final
rating on the notes is contingent on the receipt of final
documentation conforming materially to information already
received. The ratings assigned to Global's US$2 billion EMTN
program have also been downgraded to 'CC' from 'BBB' and 'C' from
'F3', which reflects Fitch's current assessment for recoveries for
any issuance under the program of 'RR4'.
The rating action follows Global's inability to meet an obligation
due on December 15, 2008, due to cash flow problems. Fitch
understands that failure to meet this obligation within 72 hours
would result in the company defaulting on this obligation.
Global is in negotiations with local financial institutions to
refinance the above facility. Fitch will resolve the RWN on the
Long- and Short-term IDRs and Individual rating following the
outcome of these negotiations. Fitch understands that other
obligations will also fall due in December.
===============
M A L A Y S I A
===============
SATANG HOLDINGS: Posts MYR7.57MM Net Loss in Qtr. Ended Sept. 30
----------------------------------------------------------------
Satang Holdings Berhad disclosed with the Bursa Stock Exchange its
unaudited financial results for fourth quarter ended Sept. 30,
2008.
The company posted MYR7.57 million net loss on MYR22.34 million of
revenues in the quarter ended Sept. 30, 2008, as compared to
MYR5.48 million net loss on MYR8.52 million of revenues in the
same quarter of 2007.
As of Sept. 30, 2008, the company's balance sheet showed
MYR36.59 million of total current assets available to pay
MYR32.40 million of total current liabilities.
Satang Holdings Berhad, formerly Satang Jaya Holdings Berhad, is
engaged in the maintenance, repair and overhaul of aviation and
safety equipment and operations and principally in Malaysia.
Through its subsidiaries, the company is also engaged in the
supply and distribution of environmental products, providing
training and seminar in respect of environmental management
system and other related services; providing consultancy and
solution services and implementing of high-technology and
surveillance security systems and its related services;
supplying and servicing of pipe cleaning products and equipment,
and supplying and maintenance of marine safety and survival
equipment and accessories. Its subsidiaries include Satang
Environmental Sdn. Bhd., Satang Cylinder Services Sdn. Bhd., SAR
Services (M) Sdn. Bhd., Satang Hi-Tech Security Sdn. Bhd.,
Satsang-ICS global Sdn Bhd. and Port Marine Safety Services Sdn.
Bhd.
* * *
As reported by the Troubled Company Reporter-Asia Pacific on
May 13, 2008, the company triggered Paragraph 2.1 of the Amended
Practice Note 17/2005 as its independent auditor, Anuarul Azizan
Chew & Co., has concluded in its Audit Investigative Reports
that out of the MYR39.27 million alleged overstated revenue of
the company, MYR35.43 million represents invalid sales which
should not be recorded in the books for the financial year ended
September 30, 2007.
====================
N E W Z E A L A N D
====================
BRIDGECORP LTD: Ex-Directors Depositions Hearing Set on Feb. 24
---------------------------------------------------------------
Two executive directors of Bridgecorp Ltd will reappear in court
on February 24, 2009, for a depositions hearing, The National
Business Review reports.
Rod Petricevic and Robert Roest, the Business Review relates, have
appeared in Auckland District Court facing charges under the
Securities Act and the Companies Act.
As reported in the Troubled Company Reporter-Asia Pacific on
September 15, 2008, the Securities Commission said that new and
more serious Securities Act charges have been laid against Messrs.
Petricevic and Roest.
These additional charges arise from claims in the Bridgecorp
prospectus about the company's record of making payments to
investors. They carry a maximum penalty of 5 years imprisonment
or fines of up to NZ$300,000.
The charges have been laid by the Companies Office at the request
of the Securities Commission, following further investigations
into statements in the prospectus.
The prosecution, the Business Review notes, is separate to a
Serious Fraud Office investigation into the running of the
company.
New Zealand-based Bridgecorp Ltd was placed in receivership on
July 2, 2007, after failing to pay principal due to debenture
holders. John Waller and Colin McCloy, partners at
PricewaterhouseCoopers, were appointed as receivers. The
company owes around 1,800 debenture holders, which liquidators
estimate hold approximately NZ$500 million.
CONSOLIDATED TECH: High Court Orders Liquidation of Business
------------------------------------------------------------
Consolidated Technologies Development (NZ) Limited has been put
into liquidation by the High Court over a debt to Dempsey and Wood
Civil Contractors, The New Zealand Herald reports.
The Herald relates that the company had previously attempted to
recover NZ$13.6 million from Blue Chip founder Mark Bryers.
In July, the Herald recalls, the High Court ordered Mr. Bryers to
pay Consolidated Technologies the debt plus interest, or
potentially face bankruptcy. The company gained a summary
judgment against Mr. Bryers.
CONSTELLATION RENTALS: Creditors' Proofs of Debt Due on Dec. 22
---------------------------------------------------------------
The creditors of Constellation Rentals Ltd. are required to file
their proofs of debt by December 22, 2008, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Nov. 13, 2008.
The company's liquidators are:
Craig Andrew Young
Raymond Gordon Burgess
Restructuring Services Limited
PO Box 87340, Meadowbank
Auckland
Telephone:(09) 525 7236
Facsimile:(09) 528 9521
DR STIFF: Creditors' Proofs of Debt Due on Dec. 19
--------------------------------------------------
The creditors of Dr Stiff Ltd. are required to file their proofs
of debt by December 19, 2008, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Nov. 14, 2008.
The company's liquidator is:
John Albert Price
c/o Horton Price Limited
PO Box 9125, Newmarket
Auckland 1149
Telephone:(09) 366 3700
Facsimile:(09) 366 3705
e-mail: jprice@hortonprice.co.nz
ECS PERSONNEL: Court to Hear Wind-Up Petition on December 19
------------------------------------------------------------
A petition to have ECS Personnel Ltd.'s operations wound up will
be heard before the High Court at Auckland on December 19, 2008,
at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on October 21, 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
FCL LOGISTICS: Court Hears Wind-Up Petition
-------------------------------------------
On December 12, 2008, the High Court at Auckland heard a petition
to have FCL Logistics Ltd.'s operations wound up.
The Commissioner of Inland Revenue filed the petition against the
company on July 23, 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
Telephone:(09) 336 7556)
FLASH LIGHTS: Court Hears Wind-Up Petition
------------------------------------------
On December 10, 2008, the High Court at Wanganui heard a petition
to have Flash Lights Electrical Ltd.'s operations wound up.
The Commissioner of Inland Revenue filed the petition against the
company on Oct. 29, 2008.
The CIR's solicitor is:
Julia Marie Snelson
Inland Revenue Department
Legal and Technical Services
NZ Post House, First Floor
7-27 Waterloo Quay
PO Box 1462, Wellington
Telephone:(04) 890 1127
Facsimile:(04) 890 0009
GENEVA FINANCE: May Face Suspension for Late Half Year Reporting
----------------------------------------------------------------
Geneva Finance Limited failed to submit its half year report for
the half year ending September 30, 2008, to the NZX. The report
was due to be issued to NZX on December 14, 2008.
The NZX Regulation has given Geneva Finance until December 22,
2008, to issue its half-year results or its stocks will be
suspended from trade effective from the commencement of trading
Tuesday, December 23, 2008.
Geneva Finance Limited -- http://www.genevafinance.co.nz/--
provides finance and financial services to the consumer credit
and small to medium business markets. The company provides hire
purchase finance and personal loans secured by registered
security interests over personal assets such as motor vehicles,
household goods and residential property. Geneva Finance's
loans are originated through three distribution channels
(Direct, Retail and Dealer), processed by the central sales desk
and mobile sign-up managers then administered through a national
operations centre located at Mt Wellington, Auckland.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
May 1, 2008, Standard & Poor's Ratings raised its long-term
counterparty credit rating on New Zealand finance company Geneva
Finance Ltd. (Geneva) to 'CCC' from 'CC'. The three-rating-
notch upgrade follows Geneva debtholders' acceptance of a
recapitalization and new funding proposal, and Geneva's banker
support to the proposal. The proposal will provide more funding
certainty in the short term, and will materially strengthen the
company's capitalization. At the same time, the rating was
removed from CreditWatch with developing implications, where it
was initially placed on November 5, 2007. The outlook on the
rating is negative.
GOLDEN CITY: Fixes December 28 as Last Day to File Claims
---------------------------------------------------------
The creditors of Golden City Developments Ltd. are required to
file their proofs of debt by December 28, 2008, to be included in
the company's dividend distribution.
The company's liquidators are:
Brian Mayo-Smith
Shaun Neil Adams
BDO Spicers
Rifleman Tower, Level 8
120 Albert Street
Auckland 1010
Telephone:(09) 373 9053
Facsimile:(09) 303 2830
e-mail: shaun.adams@bdospicers.com
HAPPY DAYS: Court Hears Wind-Up Petition
----------------------------------------
On December 15, 2008, the High Court at Auckland heard a petition
to have Happy Days 2000 Ltd.'s operations wound up.
John Trevor Whittfield and Boris van Delden filed the petition
against the company on September 29, 2008.
The Petitioners' solicitor is:
Richard Norman Tudway Norris
Jackson Russell, 3rd Floor
9 Princes Street, Auckland
J.T. PAINTERS: Court to Hear Wind-Up Petition on December 19
------------------------------------------------------------
A petition to have J.T. Painters Ltd.'s operations wound up will
be heard before the High Court at Auckland on December 19, 2008,
at 11:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on October 22, 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
JAPANESE RESTAURANT: Court to Hear Wind-Up Petition on December 19
------------------------------------------------------------------
A petition to have Japanese Restaurant Holdings Ltd.'s operations
wound up will be heard before the High Court at Auckland on
December 19, 2008, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on October 16, 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
MS INTERNATIONAL: Court Hears Wind-Up Petition
----------------------------------------------
On December 12, 2008, the High Court at Auckland heard a petition
to have MS International Ltd.'s operations wound up.
The Commissioner of Inland Revenue filed the petition against the
company on July 29, 2008.
The CIR's solicitor is:
Michael Kinlim Yan
Inland Revenue Department
Legal and Technical Services
5-7 Byron Avenue
PO Box 33150, Takapuna
Auckland
Telephone:(09) 984 1514
Facsimile:(09) 984 3116
N Y INTERNATIONAL: Court Hears Wind-Up Petition
-----------------------------------------------
On December 12, 2008, the High Court at Auckland heard a petition
to have N Y International Ltd.'s operations wound up.
James & Wells Intellectual Property filed the petition against the
company on August 7, 2008.
James & Wells' solicitor is:
Rodney Gordon Ewen
Wynyard Wood, Solicitors
Gosling Chapman Tower, Level 15
51-53 Shortland Street
PO Box 2217, Auckland
Facsimile:(09) 309 1044
O'RORKE LTD: Creditors' Proofs of Debt Due on Dec. 23
-----------------------------------------------------
The creditors of O'Rorke Ltd. are required to file their proofs of
debt by December 23, 2008, to be included in the company's
dividend distribution.
The company's liquidator is:
D. C. Parsons
Indepth Forensic Limited, Insolvency Practitioners
PO Box 278, Hamilton
Telephone:(07) 957 8674
Facsimile:(07) 957 8677
OWEN'S PAINTING: Court Hears Wind-Up Petition
---------------------------------------------
On December 11, 2008, the High Court at Napier heard a petition to
have Owen's Painting Contractors Ltd.'s operations wound up.
The Commissioner of Inland Revenue filed the petition against the
company on October 20, 2008.
The CIR's solicitor is:
R. J. Collins
Elvidge & Partners, Solicitors
corner of Raffles and Bower Streets
Napier
PLUS SMS: Has Until Dec. 22 to File Half Year Report
----------------------------------------------------
Plus SMS Holdings Limited failed to submit its half year report
for the half year ending September 30, 2008, to the New Zealand
Stock Exchange. The report was due to be issued to NZX on
December 14, 2008.
The NZX Regulation has given Plus SMS until December 22, 2008, to
issue its half-year results or its stocks will be suspended from
trade effective from the commencement of trading Tuesday,
December 23, 2008.
Plus SMS Holdings Ltd. (NZX: PLS) -- http://www.cre-eight.com/
-- is the parent company of Plus SMS Limited. It provides
access to businesses to the number ranges required for the
routing of short message service and multimedia messaging system
messages worldwide using a single short number. On July 4,
2005, Plus SMS Limited acquired Plus SMS Holdings Limited in a
reverse acquisition.
* * *
The company incurred three consecutive net losses of NZ$6.96
million, NZ$11.89 million, and NZ$4.49 million for the financial
years ended March 31, 2008, 2007 and 2006, respectively.
SEALITE INVESTMENTS: Appoints Grant and Khov as Liquidators
-----------------------------------------------------------
On November 18, 2008, Damien Grant and Steven Khov were appointed
as liquidators of Sealite Investments Ltd.
Only creditors who can file their proofs of debt by Dec. 17, 2008,
will be included in the company's dividend distribution.
The Liquidators can be reached at:
Damien Grant
Steven Khov
Waterstone Insolvency
PO Box 352, Auckland
Freephone:0800CLOSED
Facsimile:0800FAXWSI
WAIPA WATER: Appoints David Petterson as Liquidator
---------------------------------------------------
On November 20, 2008, David Petterson was appointed as liquidator
of Waipa Water Ltd.
Only creditors who can file their proofs of debt by Dec. 8, 2008,
will be included in the company's dividend distribution.
The Liquidator can be reached at:
David Petterson
Forensic Accounting Services Limited
PO Box 1003, Levin 5540
Telephone:(06) 367 8044)
e-mail: david@fasl.co.nz
WEBNICHE LTD: Appoints Sherriff and Vance as Liquidators
--------------------------------------------------------
On November 17, 2008, Gregory John Sherriff and David Stuart Vance
were appointed as liquidators of Webniche Ltd.
Only creditors who were able to file their proofs of debt by
Dec. 15, 2008, will be included in the company's dividend
distribution.
The company's liquidators are:
Gregory John Sherriff
David Stuart Vance
Deloitte
Deloitte House, Levels 11-16
10 Brandon Street
Wellington 6011
Telephone:(04) 472 1677
Facsimile:(04) 472 8023
===============
P A K I S T A N
===============
* Moody's Confirms Pakistani Banks' B3 Deposit Ratings
------------------------------------------------------
Moody's Investors Service has confirmed, with a negative outlook,
the B3 long-term foreign currency deposit ratings of four
Pakistani banks. The following Pakistani banks are affected by
the rating action:
* National Bank of Pakistan (B3 Neg/Not-Prime/D BFSR)
* Habib Bank Ltd. (B3 Neg/ Not-Prime /D- BFSR)
* United Bank Ltd. (B3 Neg/ Not-Prime /D- BFSR)
* MCB Bank Ltd. (B3 Neg/ Not-Prime /D BFSR)
This concludes the review for possible downgrade for these banks
initiated by Moody's on October 29, 2008.
"The rating action is in response to the recent announcement by
Moody's sovereign risk group that it has changed the outlook on
Pakistan's B3 foreign currency bank deposit ceiling to negative,"
explains Nondas Nicolaides, Vice President - Senior Analyst in
Moody's Financial Institutions Group. The outlook change for the
country ceiling concluded Moody's review for possible downgrade,
further to the recent finalisation of a two-year, US$7.6 billion
standby financing agreement with the IMF, which will avert a near-
term sovereign debt default. The foreign currency deposit ratings
of the four above-named Pakistani banks remain constrained by this
country ceiling.
The outlook on the bank financial strength rating (BFSR) of each
of the four Pakistani institutions remains stable. However,
Moody's cautions that downward rating pressure could develop in
the event of a deterioration in Pakistan's economy above current
expectations, while security threats could challenge the country's
political and economic stability.
"For the time being, however, Moody's continues to believe that
the rated Pakistani banks display satisfactory financial
fundamentals overall and solid franchises," says Mr. Nicolaides.
Despite challenging market conditions and a deterioration in the
macro-economic environment, the banks' performance remains
adequate for now in terms of both business growth and
profitability.
As all four banks' short-term foreign currency ratings are already
at Not-Prime, the outlook on these ratings remains stable.
Moody's previous rating action on the four Pakistani banks was
implemented on October 29, 2008, when the rating agency downgraded
the long-term local currency deposit ratings to Ba2 following the
downgrade of the country's local currency deposit ceiling to Ba2
from Baa2. The short-term local currency deposit ratings for
National Bank of Pakistan and MCB Bank were also downgraded to
Not-Prime from Prime-3. In the same rating action, Moody's also
placed the B3 long-term foreign currency deposit ratings of the
four banks on review for possible downgrade, in line with a
similar rating action on Pakistan's B3 foreign currency deposit
ceiling, as this ceiling acts as a constraint on these deposit
ratings.
The principal methodologies used in rating the above-named
Pakistani banks are "Bank Financial Strength Ratings: Global
Methodology" and "Incorporation of Joint-Default Analysis into
Moody's Bank Ratings: A Refined Methodology". Both can be found
at http://www.moodys.comin the Credit Policy & Methodologies
directory, in the Ratings Methodologies subdirectory. Other
methodologies and factors that may have been considered in the
process of rating the banks can also be found in the Credit Policy
& Methodologies directory.
Headquartered in Karachi, National Bank of Pakistan reported total
assets of PKR740.4 billion (US$9.5 billion) at the end of
September 2008.
Headquartered in Karachi, Habib Bank Ltd reported total assets of
PKR742.7 billion (US$9.5 billion) at the end of September 2008.
Headquartered in Karachi, United Bank Ltd reported total assets of
PKR618.1 billion (US$7.9 billion) at the end of September 2008.
Headquartered in Lahore, MCB Bank Ltd reported total assets of
PKR456.3 billion (US$5.8 billion) at the end of September 2008.
=================
S I N G A P O R E
=================
PARKWAY HOLDINGS: Cuts Salaries, Lays Off 148 Workers
-----------------------------------------------------
Parkway Holdings Limited is reducing the salaries of its senior
and middle managers by up to 35 per cent, Timothy Ouyang at
Channel NewsAsia reports.
Parkway, the report says, is also cutting its total workforce in
Singapore by about four per cent, or some 148 jobs.
According to Channel NewsAsia, Parkway's senior managers will see
cuts in base salaries of between 15 per cent and 35 per cent,
while its middle management's base salaries will be reduced by
between five per cent and 10 per cent.
The Group will also waive its directors' fees this year, the
report adds.
Parkway, Channel NewsAsia notes, has implemented a series of cost-
cutting measures, including the freezing of non-clinical corporate
headcount, since July 2008.
In a statement, Richard Seow, Chairman of Parkway Holdings Limited
said "Like many other companies in Singapore and the rest of the
world, Parkway is facing an economic environment that is
challenging and with little precedent. The regional healthcare
sector is not immune to the effects of a volatile global economy.
While Parkway's regional healthcare business remains sound and
long term industry fundamentals remain intact, we are taking
necessary and prudent actions to prepare the company for a more
difficult and challenging market environment ahead. Management of
costs will start from the top of the organization, with Directors
of Parkway volunteering to waive fees and senior management taking
significant wage reductions."
Dr Lim Cheok Peng, Managing Director and CEO, Parkway Holdings
Limited, said "The Group has weathered past crises in 1997 and in
2003 very well. However, this time, we need to take a more
cautious approach to everything we do in anticipation of the
expected impact of the current global economic challenges. While
we are concerned about the impact today's decision will have on
our employees and their families, our leadership is making every
effort to ensure that the affected employees are treated in a fair
and appropriate manner. The company is committed to helping these
employees through a variety of outplacement programs developed
to assist them during this difficult period."
About Parkway Holdings
Parkway Holdings Limited is an integrated healthcare organization.
The principal activities of the company are those relating to
investment holding while those of the subsidiaries consist of the
business of private hospital ownership and management and related
healthcare services; ownership and management of medical clinics;
practice of dental surgeons and the operation of dental clinics;
provision of clinical research services, ownership and management
of radiology clinics; provision of diagnostic laboratory services;
provision of managed care and related services; underwriting of
accident and healthcare insurance policies, and investment holding
and trading. On August 23, 2007, it disposed interest in
hospitals and medical units in East Shore Hospital, Gleneagles
Hospital and Mount Elizabeth Hospital, into Parkway Life REIT. In
May 2007, it opened China's medical and day surgery centre in
Shanghai's upmarket Tomorrow Square. As a result, it acquired
World Link Group on May 3, 2007.
================
S R I L A N K A
================
EDIRISINGHE TRUST: Fitch Upgrades Long-Term Rating to 'BB-(lka)'
----------------------------------------------------------------
Fitch Ratings Lanka has upgraded Sri Lanka's Edirisinghe Trust
Investments Limited's (ETI) National Long-term rating to 'BB-
(lka)' (BB minus(lka)) from 'B+(lka)' and revised the Outlook to
Stable from Positive.
The rating upgrade reflects ETI regularizing its previous lapses
in operational procedures. In addition to completing the
automation of systems across all business units in FY08, the
company continued to dispose unredeemed gold since FY06, as
required under the Pawnbrokers Ordinance. The rating also factors
ETI's competencies and strong market position amongst non-bank
financial institutions, in its core business of pawnbroking. The
rating is constrained by ETI's low capitalization, current
exposure to real estate and weak asset quality in vehicle finance.
The company continued to grow its loan book rapidly at a CAGR of
45% in one and a half years to end-September 2008 (H109), with as
much as 74% of incremental growth derived from pawnbroking, a
relatively low-risk asset class. ETI leverages on the brand name
of group company Swarnamahal Jewellers Pvt Ltd in mobilizing
customers in this product, as well as its large and growing
network of pawning centres (H109: 33). Pawnbroking accounted for
56.6% of ETI's loan portfolio at H109, and vehicle finance (lease
and hire purchase) amounted to 34.9% of the loan portfolio at H109
(FYE07: 45.5%). Real estate, in the form of housing development
projects and land, marketed to the upper-middle income and middle-
income segments, consisted of 14.2% of assets at H109. The
company has expressed intensions to curtail real estate
investments, given the current slowdown in demand for this
product.
Asset quality compares favorably against the sector, due to ETI's
high exposure to pawnbroking. High redemption rates and demand
for gold has meant that the company has the ability to dispose its
unredeemed gold stock with relative ease, accumulating zero NPLs
in this product. Increased repossession of vehicles enabled ETI
to improve the gross NPL ratio (Fitch defines NPLs as loans in
arrears of over three months) to 8.0% at H109 from 11.3% at FYE08.
Fitch notes that under its definition of NPLs, asset quality in
vehicle finance continues to remain weak at 19.9% at H109, however
has improved at the regulatory six-month level over the past two
years, and was comfortable at 4.2% at H109.
Increased operating expenditure due to rapid expansion and
inflationary pressures, and a significant decline in income
generated via real estate, resulted in a marked decline in ROA to
0.7% at H109 (FYE08: 2.1%). The agency notes that profitability
would continue to be subject to fluctuations, due to time lags in
realising real estate gains.
ETI successfully leverages on the group's brand name with deposit
growth rates continuing to be high in comparison to the sector.
Although the majority of depositors are from the Western Province,
deposit concentrations remain low. Deposits funded 78% of assets
at H109, and would continue to be the primary source of funding in
the near term. The company's capital position is weak with Tier 1
and Total capital adequacy ratios at 5.5% and 11.1% respectively,
at FYE08, only marginally above the minimum requirements. Fitch
notes that the company would need to strengthen its capital base
in order to support future growth, especially in its non-
pawnbroking products.
ETI is a registered finance company with the Edirisinghe family
holding 99% of its equity at FYE08.
====================
UNITED ARAB EMIRATES
====================
* Mounting Pressures Cue Moody's to Change Outlooks on 4 UAE Banks
------------------------------------------------------------------
Moody's Investors Service has revised downwards the outlooks on
the ratings of four banks based in the United Arab Emirates (UAE).
The rating outlooks for Abu Dhabi Commercial Bank (ADCB), First
Gulf Bank (FGB), and Dubai Islamic Bank (DIB) have been changed to
'negative' from 'stable', while the rating outlook on Dubai Bank
(DB) has been changed to 'stable' from 'positive'. Concurrently,
the outlooks on the ratings for all senior unsecured debt issued
by the above-named banks have also been revised accordingly.
"The rating action reflects: (i) the mounting liquidity pressures
in the short to medium term; (ii) the growing downward pressures
on asset prices (mainly stocks and properties); and (iii) the
anticipated profitability pressures from rising funding costs
derived from increasingly scarce liquidity and loss of
confidence," explains John Tofarides, Analyst in Moody's Financial
Institutions Group.
Moody's observes that liquidity conditions in the UAE weakened
significantly during Q3 2008. The flight of speculative deposits
from the country created substantial short-term liquidity
pressures, which prompted the UAE Central Bank to offer emergency
liquidity support facilities, and the Ministry of Finance to
announce a three- to five-year deposit scheme to fill the gaps
created by the disappearance of the long-term funding market.
Moody's notes that soaring loan growth levels and future loan
commitments, in tandem with maturing MTN programmes, are
exacerbating the pressures on UAE banks' liquidity.
"Moody's recognizes that the currently excellent asset quality and
profitability levels reported by all UAE banks -- as a result of
the benign credit environment up until autumn 2008 -- may be
negatively affected going forward," cautions Mr. Tofarides.
Looking ahead, the operating environment in the UAE is faced with
increasing challenges emanating from the volatility in both the
equity and real estate markets.
Indeed, there is increasing evidence that the demand for
properties in the UAE has dwindled significantly due to (i)
negative sentiment, (ii) lack of affordability and (iii) poor
systemic liquidity. Moody's expects these trends to continue.
Moreover, the observed slowdown in quarter-by-quarter real estate
investment returns (although these were still positive until Q3
2008, according to Colliers International House Price Index)
points to a continued decelerating trend. Although Moody's cannot
predict the extent and severity of the highly likely property
market squeeze, the rating agency nevertheless remains cautious,
particularly with regard to banks whose loan composition appears
to be largely tilted towards real estate and construction loans.
Moody's notes that, it will continue to monitor the ratings of all
UAE banks and may take rating actions if evidence of a liquidity
squeeze, emerging asset quality problems or profitability
pressures materialize.
The ratings and outlooks on the four affected banks are:
Abu Dhabi Commercial Bank PJSC:
* BFSR: C-/Baa2 (Negative outlook)
* Global Local Currency Deposit Ratings: Aa3 (Negative
Outlook).
* Foreign Currency Deposit Ratings: Aa3 (Negative Outlook).
* Foreign Currency Debt Rating for senior debt obligations:
Aa3 (Negative outlook).
* Foreign Currency Debt Rating for subordinated obligations:
A1 (Negative outlook).
* Short-term Local Currency and Foreign Currency rating
remains unchanged at P-1.
* Commercial Paper Rating remains unchanged at Prime-1.
First Gulf Bank:
* BFSR of D+/Ba1 (Negative outlook).
* Global Local Currency Deposit Ratings of A2 (Negative
outlook).
* Foreign Currency Deposit Ratings of A2 (Negative outlook).
* Foreign Currency Debt Rating for senior debt obligations of
A2 (Negative outlook).
* Foreign Currency Debt ratings for subordinated obligations
of A3 (Negative outlook).
* Short-term Local Currency and Foreign Currency rating
remains unchanged at P-1
Dubai Islamic Bank:
* BFSR of D+/Baa3 (Stable outlook)
* Global Local Currency Issuer Ratings of A1 (Negative
outlook).
* Foreign Currency Issuer Ratings of A1 (Negative outlook).
* Foreign Currency Debt rating for senior debt obligations
(Sukuk) of A1 (Negative outlook).
* Short-term Local Currency and Foreign Currency rating
remains unchanged at P-1
Dubai Bank:
* BFSR of D/Ba2 (Stable outlook)
* Global Local Currency Issuer Ratings of A3 (Stable outlook),
* Foreign Currency Issuer Ratings of A3 (Stable outlook)
* Foreign Currency Debt rating for senior debt obligations
(Sukuk) of A3 (Stable outlook).
* Short-term Local Currency and Foreign Currency rating
remains unchanged at P-2.
Abu Dhabi Commercial Bank reported total assets of AED135.4
billion (US$36.8 billion) as at 30 September 2008. Moody's
previous rating action on this bank was taken on April 24, 2007,
when the BFSR was changed to C- from D+, while all other ratings
remained unchanged.
First Gulf Bank reported total assets of AED103.9 billion (US$28.3
billion) as at September 30, 2008. Moody's previous rating action
on FGB was the assignment of initial ratings on June 6, 2007.
Dubai Islamic Bank reported total assets of AED86.8 billion
(USD23.58) as at September 30, 2008. Moody's previous rating
action on Dubai Islamic bank was the assignment of initial ratings
on November 16, 2006.
Dubai Bank reported total assets of AED16.5 billion (US$4.5
billion) as at September 30, 2008. Moody's previous rating action
on Dubai Bank was the assignment of initial ratings on August 18,
2008.
===============
X X X X X X X X
===============
* GM & Chrysler Default Risk Hinges on Government Action, S&P Says
------------------------------------------------------------------
Standard & Poor's Ratings Services said that, in light of the U.S.
Senate's rejection last night of an emergency loan package for
General Motors Corp. and Chrysler LLC, the risk of default by one
or both of these companies over the next few months remains very
high. The Bush Administration said it will consider using funds
earmarked for the financial industry stabilization package to
support the U.S. automakers' near-term liquidity needs. The U.S.
Treasury said it stands ready to prevent an imminent failure of
the automakers. However, the Treasury has not yet indicated how
the automakers can access the funding provided through the
Troubled Asset Relief Program, or TARP.
It is also uncertain where TARP loans would stand in the automaker
capital structure. Ford Motor Co. is not currently seeking
federal loans, primarily because it has a large unused bank
facility. The current ratings on all three automakers already
reflect their high default risk and are therefore not changed by
the U.S. Senate vote.
S&P applies ratings in the 'CCC' category to companies that are
highly likely to default on a debt payment and that depend on
multiple factors beyond their control to meet their financial
commitments. The 'CC' rating on GM reflects these risks, as well
as the company's stated intention that it will seek to reduce its
current debt burden by more than half as it attempts to reduce
cash outflows and win support for the U.S. government-backed
loans. S&P believes the most likely scenario is that GM will
offer to exchange some or all of its outstanding debt for equity
or new debt at a steep discount to face value. Given GM's
weakening liquidity position, S&P considers such an offer to be a
distressed exchange and, as such, is tantamount to a default.
In S&P's view, the catalyst for a GM or Chrysler bankruptcy in the
very near term is unchanged: liquidity dropping below the minimum
levels needed to operate their capital-intensive vehicle
manufacturing businesses. The automakers ordinarily make
substantial payments to their suppliers early each month, and S&P
believes the several billion dollars in outlays expected during
the first few days of January 2009 could use up a substantial
portion of both companies' respective cash balances, unless U.S.
government support of some kind is forthcoming or the suppliers
defer these payments. Consumer demand in the U.S. and other key
markets has only worsened since these companies first said they
might not have enough cash to support operations into early next
year. In addition, S&P believes concerns about bankruptcies have
added to the declines in GM's and Chrysler's sales and therefore
heightened their cash use.
In addition, S&P remains concerned about the spillover effects of
an automaker failure on the North American parts suppliers. Many
important suppliers sell parts to more than one automaker, and as
S&P has stated previously, if GM or Chrysler should file for
bankruptcy, withhold payments to suppliers, or be forced to halt
operations, the repercussions to the suppliers would be dramatic.
S&P placed 15 suppliers on CreditWatch with negative implications
on Nov. 13, 2008, as a result of their significant exposure to the
Michigan-based automakers.
Ford's liquidity remains materially better than that of the other
two Michigan-based automakers. However, if GM or Chrysler were to
file for bankruptcy, Ford may have to use its liquidity to keep
its supply base intact.
S&P's recovery ratings on U.S. automaker debt are based on the
assumption of a bankruptcy filing, multi-year reorganization, and
eventual emergence. These ratings are not affected by the
developments. Expected recovery prospects for secured and
unsecured debtholders vary by automaker, largely reflecting the
company-specific mix of secured and unsecured debt in the capital
structure rather than vastly different fundamentals for each
company.
Ratings List
General Motors Corp.
Corporate Credit Rating CC/Negative/--
Senior Secured CCC
Recovery Rating 1
Senior Unsecured CC
Recovery Rating 4
Ford Motor Co.
Corporate Credit Rating CCC+/Negative/--
Senior Secured CCC+
Recovery Rating 3
Senior Unsecured CCC-
Recovery Rating 6
Chrysler LLC
Corporate Credit Rating CCC+/Negative/--
Senior Secured
$7 bil. first-lien term bank ln
due 2013 B
Recovery Rating 1
$2.0 bil. second-lien bank ln
due 2014 CCC+
Recovery Rating 4
* INSOL Recognizes First Global Insolvency Practice Course Grads
----------------------------------------------------------------
INSOL International discloses its first graduating class of the
Global Insolvency Practice Course. The successful participants
are now formally recognized as a Fellow, INSOL International.
Scott Atkins, Henry Davis York Lawyers, Australia
Jasper Berkenbosch, DLA Piper, The Netherlands
Samantha Bewick, KMPG LLP, UK
Peter Declercq, Brown Rudnick LLP, UK
Robert Dakis, Quinn Emanuel Urquhart Oliver & Hedges LLP, USA
Jasper Frieling, H?cker Avocaten, The Netherlands
Leonard Goldberger, Stevens & Lee, P.C., USA
Peter Gothard, Ferrier Hodgson, Australia
Jackson Ip, Horwath Corporate Advisory Services Ltd., Hong Kong
Eric Jourdanet, IFC, USA
Fredrikus Kolkman, Kolkman Advocaten voor Ondernemers BV, The
Netherlands
Christopher McDuff, Myers & Alberga, Cayman Islands
Curtis Mechling, Stroock & Stroock & Lavan LLP, USA
Edward Middleton, KPMG LLP, Hong Kong PRC
Mak Mwenya, PricewaterhouseCoopers LLP, UK
Bruno Navarro, IFC, Hong Kong PRC
Stephen Packman, Archer & Greiner, PC, USA
Richard Pedone, Nixon Peabody, USA
Christiaan Zijderveld, Houthoff Buruma, The Netherlands
The Global Insolvency Practice Course is the pre-eminent advanced
educational qualification focusing on international insolvency.
With the fast growing number of cross-border insolvency cases and
the adoption in many jurisdictions of international insolvency
rules and provisions, the turnaround and insolvency profession
faces increasing challenges in the current economic environment.
The current outlook demonstrates that the practitioners of
tomorrow need to have extensive knowledge of the transnational and
international aspects of legal and financial problems of
businesses in distress.
The format of the fellowship programme is intensive, carried out
over a short period of time in three modules. The first module
was held in the Netherlands from the June 16 to 18, 2008, at the
Faculty of Law of Leiden University. The second module took place
in Shanghai from the September 12 to 14, 2008, prior to the INSOL
annual conference. The last module involved the students
utilizing web enabled technology which included a virtual court
and undertaking real time negotiations for a restructuring plan
involving multiple jurisdictions. The platform for this module
was made available through the generous support of the University
of British Columbia, Vancouver, Canada. A number of senior judges
from around the world took part in Module C in order for the
participants to gain experience of court to court situations.
The judges included Hon. Mr. Justice Robert Drain, US Bankruptcy
Court; Hon. Mr. Justice David Richards, Royal Courts of Justice,
London; Hon. Mr. Justice David Tysoe, British Columbia Court of
Appeal, Hon. Mr. Justice Jean-Luc Vallens, Cour Commerciale,
France; Hon. Mr. Justice Rajiv Shakdher, High Court of Delhi; Hon.
Mr. Justice James Farley, retired judge Ontario Superior Court of
Justice.
Admission to the course is limited to a maximum of 25 candidates
each year. This ensures academic excellence and the opportunity
for good personal contact between students and faculty. Potential
candidates must already hold a degree or equivalent to be
considered for this programme and must have a minimum of 5 years
experience in the field. Participants represent the different
jurisdictions of the World.
Mahesh Utamachandani, Senior Counsel and Head of Global Insolvency
Initiative, World Bank:
"The fellowship programme will be a very rewarding investment
towards a successful career, both through helping the development
of professional skills and through fostering a greater
understanding of different jurisdictions' cultures and systems."
Professor Ian Fletcher of University College London, a member of
the Core Committee responsible for planning the programme:
"Designed and taught by an international Faculty of highly
distinguished experts, the INSOL Fellowship Programme offers a
unique learning experience. It answers a long-felt demand for a
benchmark qualification to identify those practitioners who are in
the front rank of transnational insolvency practice in today's
challenging global market place."
Bob Sanderson, President of INSOL:
"In the ever increasingly complex capital markets coupled with the
continued globalization the requirement for those charged with
ensuring the troubled international enterprises are restructured
effectively and efficiently is vital. This program meets this
requirement."
INSOL was formed in 1982 and has grown in stature to become the
leading insolvency association in the world. It is a valuable
source of professional knowledge, which is being put to use around
the world on diverse projects to the benefit of the business and
financial communities.
INSOL'S Mission
INSOL with its Member Associations will take the leadership role
in international turnaround, insolvency and related credit issues;
facilitate the exchange of information and ideas; encourage
greater international co-operation and communication amongst the
insolvency profession, credit community and related INSOL
International is a worldwide federation of national associations
of accountants and lawyers who specialize in turnaround and
insolvency. There are currently 40 Member Associations with over
9,700 professionals participating as members.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Dec. 18, 2008
TURNAROUND MANAGEMENT ASSOCIATION
Holiday MIxer
TBD, Phoenix, Arizona
Contact: 623-581-3597 or www.turnaround.org
Dec. 31, 2008
TURNAROUND MANAGEMENT ASSOCIATION
Sponsorships - Annual Golf Outing, Various Events
TBA, New Jersey
Contact: 908-575-7333 or www.turnaround.org
Jan. 21-22, 2009
TURNAROUND MANAGEMENT ASSOCIATION
Corporate Governance Meetings
Bellagio, Las Vegas, Nevada
Contact: www.turnaround.org
Jan. 22-23, 2009
TURNAROUND MANAGEMENT ASSOCIATION
Distressed Investing Conference
Bellagio, Las Vegas, Nevada
Contact: www.turnaround.org
Jan. 22-23, 2009
AMERICAN BANKRUPTCY INSTITUTE
Rocky Mountain Bankruptcy Conference
Westin Tabor Center, Denver, Colorado
Contact: 1-703-739-0800; http://www.abiworld.org/
Feb. 5-7, 2009
AMERICAN BANKRUPTCY INSTITUTE
Caribbean Insolvency Symposium
Westin Casurina, Grand Cayman Island, AL
Contact: 1-703-739-0800; http://www.abiworld.org/
Feb. 25-27, 2009
AMERICAN BANKRUPTCY INSTITUTE
Valcon
Four Seasons, Las Vegas, Nevada
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 13, 2009
AMERICAN BANKRUPTCY INSTITUTE
Bankruptcy Battleground West
Beverly Wilshire, Beverly Hills, California
Contact: 1-703-739-0800; http://www.abiworld.org/
Apr. 1-4, 2009
AMERICAN BANKRUPTCY INSTITUTE
27th Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
Apr. 16-19, 2009
COMMERICAL LAW LEAGUE OF AMERICA
2009 Chicago/Spring Meeting
Westin Hotel on Michigan Ave., Chicago, Ill.
Contact: (312) 781-2000; http://www.clla.org/
Apr. 17-18, 2009
NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES
NABT Spring Seminar
The Peabody, Orlando, Florida
Contact: http://www.nabt.com/
Apr. 20, 2009
AMERICAN BANKRUPTCY INSTITUTE
Consumer Bankruptcy Conference
John Adams Courthouse, Boston, Massachusetts
Contact: 1-703-739-0800; http://www.abiworld.org/
Apr. 27-28, 2009
TURNAROUND MANAGEMENT ASSOCIATION
Corporate Governance Meetings
Intercontinental Hotel, Chicago, Illinois
Contact: www.turnaround.org
Apr. 28-30, 2009
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Intercontinental Hotel, Chicago, Illinois
Contact: www.turnaround.org
May 7-10, 2009
AMERICAN BANKRUPTCY INSTITUTE
27th Annual Spring Meeting
Gaylord National Resort & Convention Center
National Harbor, Maryland
Contact: http://www.abiworld.org/
May 14-16, 2009
ALI-ABA
Chapter 11 Business Reorganizations
Langham Hotel, Boston, Massachusetts
Contact: http://www.ali-aba.org
June 11-13, 2009
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa
Traverse City, Michigan
Contact: http://www.abiworld.org/
June 21-24, 2009
INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY &
BANKRUPTCY PROFESSIONALS
8th International World Congress
TBA
Contact: http://www.insol.org/
July 16-19, 2009
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Mt. Washington Inn
Bretton Woods, New Hampshire
Contact: http://www.abiworld.org/
Sept. 10-12, 2009
AMERICAN BANKRUPTCY INSTITUTE
17th Annual Southwest Bankruptcy Conference
Hyatt Regency Lake Tahoe, Incline Village, Nevada
Contact: http://www.abiworld.org/
Oct. 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Desert Ridge, Phoenix, Arizona
Contact: 312-578-6900; http://www.turnaround.org/
Dec. 3-5, 2009
AMERICAN BANKRUPTCY INSTITUTE
21st Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, California
Contact: 1-703-739-0800; http://www.abiworld.org/
Apr. 15-18, 2010
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Michigan
Contact: 1-703-739-0800; http://www.abiworld.org/
July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Ocean Edge Resort, Brewster, Massachusetts
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
http://www.beardaudioconferences.com/
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Pius Xerxes V. Tovilla, Valerie C. Udtuhan,
Marites O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante,
Marie Therese V. Profetana, Frauline S. Abangan, and Peter A.
Chapman, Editors.
Copyright 2008. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***