/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/090217.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, February 17, 2009, Vol. 12, No. 33 Headlines A U S T R A L I A ACN 079 058 174 ET AL: Commence Wind-Up Proceedings ACN 068 434 328: Members and Creditors Hear Wind-Up Report BARIANA PTY: Commences Wind-Up Proceedings BRADSNAX FOODS: Members and Creditors Hear Wind-Up Report CALMIK PTY: Members and Creditors Hear Wind-Up Report DEISLO PTY: Placed Under Voluntary Wind-Up EZU PTY: Commences Wind-Up Proceedings GOLD RECOVERY ET AL: Liquidators Present Wind-Up Report J.H.L. DESIGN: Declares Final Dividend JRM COMPUTERS: Commences Wind-Up Proceedings KIRIUM HOLDINGS: Placed Under Voluntary Wind-Up KROK PTY: Commences Wind-Up Proceedings MCG WEST: Members Receive Wind-Up Report MRAG PTY: Members Receive Wind-Up Report PAPERLINX LIMITED: Selling Unit to Nippon Paper to Cut Debts PROFESSIONAL GIFTS: Members and Creditors Hear Wind-Up Report RIO TINTO: S&P Will Rate Convertible Bonds at 'BB+' RMA LAWYERS: Declares First and Final Dividend STARTS LIMITED: Moody's Cuts Ratings on AU$70 Mil. Notes to 'Ca' STORM FINANCIAL: Founders Plan to Regain Control; to Sue CBA TERRY HANEY: Members and Creditors Hear Wind-Up Report WESTERN GRAINS: Declares First and Final Dividend WOODVILLE NEW: Members and Creditors Hear Wind-Up Report ZAMIGO PTY: Declares First Dividend C H I N A CHINA EASTERN: Gets CNY15 Billion Funding from Agricultural Bank CHINA MERCHANTS: Denies US$60 Mln. Loss on Fortis Investment SANLU GROUP: Beijing Sanyuan to Bid for Firm's Assets H O N G K O N G ASIA ALUMINUM: Discloses Proposed Debt Tender Offer CENTRAL CHINA ET AL: Members to Hold Meeting on March 9 CHEUNG FAT: Members to Hear Wind-Up Report on March 6 CITIC PACIFIC: S&P Raises Corporate Credit Rating to 'BB+' CITIC RESOURCES: S&P Downgrades Corporate Credit Rating to 'BB' GIANT CHANNEL: Inability to Pay Debts Prompts Wind-Up GIANT SHARP: Members to Hear Wind-Up Report on March 10 HANG YUE: Members to Hear Wind-Up Report on March 10 HENKEL ADHESIVES: Sole Member to Receive Wind-Up Report on March 6 JOY FORCE: Creditors Hold Meeting KELLETT ESTATES: Creditors' Proofs of Debt Due on February 24 MARRIAGE MINISTRIES: Members to Hear Wind-Up Report on March 9 SEA CDO: Moody's Downgrades Ratings on $20 Mil. Notes to 'B2' U-RIGHT FASHION: Inability to Pay Debts Prompts Wind-Up * White & Case LLP Partners With Hong Kong's Laracy Gall I N D I A BABY MEMORIAL: CRISIL Puts 'B+' Rating on Rs.600MM Long Term Loan KANAK EXPORTS: CRISIL Rates Various Bank Facilities at 'P4' KUNNAM GRANITE: CRISIL Rates Rs.12.0 Mln Long Term Loan at 'B-' MITTAL CLOTHING: CRISIL Rates Rs.8.9MM Long Term Loan at 'BB' PREMIER MARINE: CRISIL Assigns 'B-' Rating on Rs.12.0 Mln LT Loan UNITED CONVEYOR: CRISIL Rates Rs.215MM Cash Credit Limits at 'BB' * INDIA: Autoparts Suppliers' Creditworthiness Down, CRISIL Says I N D O N E S I A EXCELCOMINDO PRATAMA: Cancels Plans to Sell Tower Assets J A P A N AMERICAN INT'L: Sells Thailand Banking Units to Bank of Ayudhya AMERICAN INT'L: To Sell Tokyo Office Building CLOVERIE PLC: Moody's Junks Ratings on JPY5 Bil. Notes CORSAIR (JERSEY): S&P Revises Rating on Series 52 Deal to 'BB+' ES-CON JAPAN: JCR Lowers Senior Debts Rating from 'BB+' to 'BB-' NASHIMATSU CONSTRUCTION: S&P Cuts Corporate Credit Rating to 'BB' PIONEER CORPORATION: Moody's Downgrades Issuer Rating to 'Ba3' PIONEER CORPORATION: S&P Downgrades Corp. Credit Rating to 'BB-' * JAPAN: Unsold Condominiums in Tokyo Dropped Last Month * S&P Put Junk Ratings on Nine Tranches on Negative CreditWatch N E W Z E A L A N D AGILITY GROUP: Sells Business to Recruit IT ALL ABOUT ET AL: Appoint Shephard and Dunphy as Liquidators D & F CONTRACTING: Court Hears Wind-Up Petition LUKE MITCHELL: Court Hears Wind-Up Petition MAFIA COFFEE: Placed Under Voluntary Liquidation NORTH 2 SOUTH ET AL: Appoint Madsen-Ries & Jordan as Liquidators OPI PACIFIC: Commences Liquidation Proceedings ROBERT MONG: Commences Liquidation Proceedings SHOTTA LTD: Appoints Shephard and Dunphy as Liquidators STARTING OVER: Creditors' Proofs of Deebt Due on May 11 ULTRA HOMES: Commences Liquidation Proceedings WILLIAMS AND ADAMS: Liquidator Downsizes Firm; 20 Jobs Affected P H I L I P P I N E S LEGACY GROUP: To File for Insolvency Next Week S O U T H A F R I C A GATEWAY TELECOMMUNICATIONS: S&P Withdraws 'B-' Corporate Rating HERNIC FERROCHROME: To Keep Plants Closed if Prices Slide Further T H A I L A N D BANK OF AYUDHYA: To Acquire AIG Thailand Units for THB2.055 Bln X X X X X X X X * S&P Puts Junk Ratings on 15 Asia-Pacific CDOs on WatchNeg. * BOND PRICING: For the Week February 16 to February 20, 2009 - - - - - ================= A U S T R A L I A ================= ACN 079 058 174 ET AL: Commence Wind-Up Proceedings --------------------------------------------------- During a general meeting held on October 28, 2008, it was resolved to voluntarily wind up the operations of: -- ACN 079 058 174 Pty Ltd; -- BBS Transports Pty Ltd; -- Craiglea Holdings Pty Ltd; -- House of Picard Pty Ltd; -- Miltana Holdings Pty Ltd; -- Nelson Jay Corporate Services Pty Ltd; -- Nelson Jay Pty Ltd; and -- Roban Investments Pty Ltd. The companies' liquidator is: Samuel Richwol O'Keeffe Walton Richwol 431 Burke Road Glen Iris VIC 3146 Telephone: (03) 9822 9823 ACN 068 434 328: Members and Creditors Hear Wind-Up Report ---------------------------------------------------------- The members and creditors of ACN 068 434 328 Pty Ltd met on December 12, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robyn Erskine c/o Brooke Bird Insolvency Practitioners 471 Riversdale Road Hawthorn East VIC 3123 Telephone: (03) 9882 6666 BARIANA PTY: Commences Wind-Up Proceedings ------------------------------------------ During a general meeting held on October 27, 2008, the members of Bariana Pty Ltd resolved that the company be wound up voluntarily. The company's liquidators are: Robyn Erskine Peter Goodin Brooke Bird, Insolvency Practitioners 471 Riversdale Road Hawthorn East, 3123 BRADSNAX FOODS: Members and Creditors Hear Wind-Up Report --------------------------------------------------------- The members and creditors of Bradsnax Foods Pty Ltd met on December 18, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: P. Newman HLB Mann Judd Chartered Accountants 160 Queen Street, Level 1 Melbourne VIC 3000 CALMIK PTY: Members and Creditors Hear Wind-Up Report ----------------------------------------------------- The members and creditors of Calmik Pty Ltd met on Dec. 12, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Peter Goodin c/o Brooke Bird Insolvency Practitioners 471 Riversdale Road East Hawthorn VIC 3123 Telephone: (03) 9882 6666 DEISLO PTY: Placed Under Voluntary Wind-Up ------------------------------------------ The members of Deislo Pty Ltd met on October 28, 2008, and resolved that the company be wound up. The company's liquidator is: H. A. Mackinnon Bent & Cougle Pty Ltd Chartered Accountants 332 St Kilda Road, Level 5 Melbourne VIC 3004 EZU PTY: Commences Wind-Up Proceedings -------------------------------------- At an extraordinary general meeting held on October 27, 2008, the members of EZU Pty Ltd resolved that the company be wound up voluntarily. The company's liquidators are: Laurence Andrew Fitzgerald Stephen Robert Dixon BDO Kendalls Business Recovery & Insolvency (NSW-VIC) Pty Ltd Chartered Accountants 525 Collins Street, Level 30 Melbourne Vic 3000 GOLD RECOVERY ET AL: Liquidators Present Wind-Up Report ------------------------------------------------------- On December 15, 2008, B. J. Marchesi and H. A. Mackinnon presented the companies' wind-up report and property disposal to the members of: -- Gold Recovery Pty Ltd; -- Lynoak Pty Ltd; -- Jack Kermode Nominees Pty Ltd; -- Samina Pty Ltd; -- Coast Regional Transport Pty Ltd; -- Wealthshare Property Group Pty Ltd; -- Eliglen Pty Ltd; -- Tantastic Pty Ltd; -- Settanta Pty Ltd; -- Brain Development Pty Ltd; and -- Biscan Pty Ltd. The Liquidators can be reached at: B. J. Marchesi H. A. Mackinnon Bent & Cougle Pty Ltd Chartered Accountants 332 St Kilda Road, Level 5 Melbourne VIC 3004 J.H.L. DESIGN: Declares Final Dividend -------------------------------------- J.H.L. Design Group Pty Ltd declared the final dividend on December 12, 2008. Only creditors who were able to file their proofs of debt by December 2, 2008, were included in the company's dividend distribution. JRM COMPUTERS: Commences Wind-Up Proceedings -------------------------------------------- The members of JRM Computers Pty Ltd met on October 30, 2008, and resolved that the company be wound up voluntarily. The company's liquidators are: David Scott Richard Rohrt c/o Scott Partners Consulting 173 Burke Road, Level 1 Glen Iris VIC 3146 KIRIUM HOLDINGS: Placed Under Voluntary Wind-Up ----------------------------------------------- The creditors of Kirium Holdings Pty Ltd met on October 27, 2008, and resolved that the company be wound up. The company's liquidators are: Gideon Rathner David Coyne Lowe Lippmann Chartered Accountants 5 St. Kilda Road, St. Kilda Victoria 3182 KROK PTY: Commences Wind-Up Proceedings --------------------------------------- At an extraordinary general meeting held on October 27, 2008, the members of Krok Pty Ltd resolved that the company be wound up voluntarily. The company's liquidators are: Laurence Andrew Fitzgerald Stephen Robert Dixon BDO Kendalls Business Recovery & Insolvency (NSW-VIC) Pty Ltd Chartered Accountants 525 Collins Street, Level 30 Melbourne Vic 3000 MCG WEST: Members Receive Wind-Up Report ---------------------------------------- The members of MCG West Pty Ltd met on December 15, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: A. B. West McGregor West Pty Ltd 478 Albert Street, Level 1 East Melbourne MRAG PTY: Members Receive Wind-Up Report ---------------------------------------- The members of MRAG Pty Limited met on December 23, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: John Morgan Rodgers Reidy 333 George Street, Level 8 Sydney NSW 2000 PAPERLINX LIMITED: Selling Unit to Nippon Paper to Cut Debts ------------------------------------------------------------ PaperlinX Limited has agreed to sell its subsidiary, Paper Australia Pty Ltd, to Nippon Paper Industries Co. Ltd. Paper Australia's major asset is the Maryvale paper mill. The sale to Nippon Paper will exclude two Tasmanian mills at Burnie and Wesley Vale. Nippon Paper intends to buy all of Paper Australia's 3,208,084,653 outstanding shares for AU$600 million (JPY36 billion) plus performance link consideration, Nippon Paper President Yoshio Haga said in a statement. Ten percent of the cash consideration is payable on signing. Other considerations include assumed liabilities and an earn-out that will allow PaperlinX to participate in positive earnings growth of the divested operations over the next three years. The target date for the shares transfer is June 2009. "Cash proceeds from the sale will be applied to reduce debt," PaperlinX said in a separate statement. PaperlinX said Feb. 16 its lenders and note holders have provided waivers in respect of the non-compliance by the company with certain of its financial ratio covenants for the period ending December 31, 2008. Under the terms of the waivers, PaperlinX must satisfy conditions, including: --- payment of a higher lending margin, --- payment of new facilitation fees, and --- provision of certain security by March 31, 2009. Additionally, PaperlinX must gain approval from lenders and note holders before declaring dividends or making distribution payments on its ordinary shares and hybrid securities. The company must also complete agreements with lenders and note holders by March 31, 2009 regarding security and future loan terms. PaperlinX noted the waiver agreement was not conditional on the sale of its unit, however, the sale of its unit is "conditional on the approval of our lenders." As a direct result of the transaction, PaperlinX said it will record a write down of approximately AU$600 million. PaperlinX will release its interim results on Feb. 27. Australia-based PaperlinX Limited (ASX:PPX) -- http://www.paperlinx.com.au/-- is a fine paper merchant and manufacturer of communication and packaging paper. PaperlinX employs over 9,600 people in 28 countries. PROFESSIONAL GIFTS: Members and Creditors Hear Wind-Up Report ------------------------------------------------------------- The members and creditors of Professional Gifts Pty Ltd met on December 18, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: P. Newman HLB Mann Judd Chartered Accountants 160 Queen Street, Level 1 Melbourne VIC 3000 RIO TINTO: S&P Will Rate Convertible Bonds at 'BB+' --------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'BBB' long-term corporate credit and debt ratings on diversified mining group Rio Tinto (incorporating Rio Tinto PLC, Rio Tinto Ltd., and subsidiaries), following the announcement of a planned $19.5 billion cash injection from Chinese, state-owned aluminum producer, Aluminum Corp. of China. At the same, time S&P placed the short-term rating of 'A-3' on CreditWatch with positive implications. The outlook remains negative. "S&P regard the announced transaction to be overall positive for Rio Tinto's near-term credit quality, and as a step forward in strengthening liquidity and lowering the group's large debt burden," said Standard & Poor's credit analyst Alex Herbert. Accordingly, absent any adverse developments, upon completion of the key components of the transaction, S&P plan to affirm the long-term 'BBB' rating, raise the short-term rating to 'A-2' from 'A-3', and to revise the outlook to stable from negative. "However, S&P believes the transaction may also involve potentially negative consequences for Rio Tinto's business profile. In S&P's view, the sale of meaningful minority stakes in key assets is complex, and involves execution and integration challenges," said Mr. Herbert. Subject to satisfactory final documents, the amount to be issued relative to the capital of the group, and absent any adverse developments, S&P expects the convertible bonds to be eligible for intermediate (50%) equity credit, and rated two notches below the group's ratings, at 'BB+'. "The negative outlook reflects uncertainty about whether the necessary approvals that are needed to complete the announced Chinalco transaction will be received," said Mr. Herbert. In the absence of any adverse developments, S&P plan to revise the outlook to stable, once S&P believes that there is a high likelihood that the key components of the transaction will complete. Shareholder, government, and regulatory approvals will in S&P's view be key milestones. In the event that key components of the transaction do not proceed, and if material debt maturities due in October 2009 and 2010 remain outstanding, then increased negative rating pressure would in S&P's view likely develop. In S&P's view, the Chinalco transaction has a positive impact on Rio Tinto's capital structure, which in S&P's opinion eliminates refinancing risks in 2009 and 2010. S&P also consider this to help mitigate potential downside risks caused by continued uncertainty as to the depth and duration of the market downturn, including the level of future metals and minerals prices. As with peers, Rio Tinto faces much weaker profits and cash flows in 2009, due to lower market prices. S&P factor in a decline in FFO in the order of 50% in 2009 to about $7 billion. A ratio of FFO to adjusted debt of 25%-30% is consistent with the ratings. RMA LAWYERS: Declares First and Final Dividend ---------------------------------------------- RMA Lawyers Pty Ltd declared the first and final dividend on November 26, 2008. Only creditors who were able to file their proofs of debt by November 24, 2008, were included in the company's dividend distribution. The company's liquidator is: Andrew Mclellan RMA Lawyers Pty Ltd c/o PPB Chartered Accountants 90 Collins Street, Level 10 Melbourne VIC 3000 STARTS LIMITED: Moody's Cuts Ratings on AU$70 Mil. Notes to 'Ca' ---------------------------------------------------------------- Moody's Investors Service has downgraded its rating of one class of notes issued by Starts (Cayman) Limited. The transaction is a managed synthetic CDO referencing global corporates. The rating action is the result of credit deterioration in the underlying portfolio combined with Moody's updated key assumptions for rating corporate synthetic CDOs announced on January 15, 2009. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports below: -- Moody's Approach To Rating Corporate Collateralized Synthetic Obligations (December 2008) -- Moody's updates key assumptions for rating corporate synthetic CDOs (January 2009) The rating action is: Issuer: Starts (Cayman) Limited -- (1) Series 2005-5 AU$70,000,000 Rated TIGERS Credit-Linked Notes due 2013 -- Current Rating: Ca -- Prior Rating: Caa3 -- Prior Rating Date: October 30, 2008 downgraded to Caa3 from A2 STORM FINANCIAL: Founders Plan to Regain Control; to Sue CBA ------------------------------------------------------------ Colin Kruger at The Age reports that Emmanuel and Julie Cassimatis, founders of Storm Financial Limited, plan to regain control of the company and sue business partner and financier Commonwealth Bank of Australia Ltd (CBA) for allegedly causing the business to collapse. According to the report, the founders told Storm's administrators, Ivor Worrell and Raj Khatri, of their plans to put forward a deed of company arrangement this month. "The DOCA proposal is likely to be complex but in essence is likely to involve related parties providing funding to pursue claims against parties alleged by the directors to have damaged the company, which damages allegedly lead to, or contributed to, its failure," The Age quoted the administrators as saying. The report quoted a spokesman for CBA as saying "the bank has not seen any deed of company arrangement." The administrators, The Age relates, expect to receive the proposal this month and said they would require more time to consider the merits of the proposal and "obtain legal advice on that proposal." The report notes that the founders will need to secure 50 per cent approval from creditors, both by number, and value of debts owed. About Storm Financial Storm Financial Limited -- http://www.stormfinancial.com.au/-- operates in the Australian wealth management industry that manages over one trillion dollars in investment fund assets for over nine million investors, distributed through investment administration providers and financial advisers. These funds are invested through different investment products and structures, including superannuation, nonsuperannuation managed funds and life insurance products. Non-superannuation managed funds, which form the majority of Storm's products, total approximately 26.5% of total investment fund assets in Australia, as of June 30, 2007. * * * As reported in the Troubled Company Reporter-Asia Pacific on Jan. 14, 2009, Storm appointed Worrells as voluntary administrators after the Commonwealth Bank of Australia Ltd (CBA) demanded debt repayment of around AU$20 million. Storm later closed its business and fired all of its 115 staff. The closure, the company's administrators said, was due to the significant reduction in Storm's income resulting in trading losses being incurred "at a rate which the company could no longer absorb." TERRY HANEY: Members and Creditors Hear Wind-Up Report ------------------------------------------------------ The members and creditors of Terry Haney & Associates Pty Limited met on December 12, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: P. Ngan Ngan & Co 49 Market Street, Level 5 Sydney NSW 2000 WESTERN GRAINS: Declares First and Final Dividend ------------------------------------------------- Western Grains Transport (NSW) Pty Ltd declared the first and final dividend on December 19, 2008. Only creditors who were able to file their proofs of debt by December 3, 2008, were included in the company's dividend distribution. WOODVILLE NEW: Members and Creditors Hear Wind-Up Report -------------------------------------------------------- The members and creditors of Woodville New & Second Hand Tyres Pty Limited met on December 12, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: P. Ngan Ngan & Co 49 Market Street, Level 5 Sydney NSW 2000 ZAMIGO PTY: Declares First Dividend ----------------------------------- Zamigo Pty Limited declared the first dividend on December 22, 2008. Only creditors who were able to file their proofs of debt by December 6, 2008, were included in the company's dividend distribution. The company's liquidator is: P. W. Gidley Ferrier Hodgson 2 Market Street, Level 3 Newcastle NSW 2300 Telephone: (02) 4908 4444 Facsimile: (02) 4908 4499 ========= C H I N A ========= CHINA EASTERN: Gets CNY15 Billion Funding from Agricultural Bank ---------------------------------------------------------------- Bloomberg News reports China Eastern Airlines Corporation Ltd has obtained a CNY15 billion (US$2.2 billion) credit line from Agricultural Bank of China. The lender will also offer financial services, including project financing and bond issuance to China Eastern, the report relates citing a statement on the airline's Web site. The report recalls the airline has already secured a CNY7 billion bailout from the government and credit lines totaling CNY20 billion from Shanghai Pudong Development Bank Co and Bank of Communications Co. According to the report, the Shanghai-based carrier has to raise funds because debts, waning demand and wrong-way bets on fuel prices means it expects its fourth loss in five years in 2009. Headquartered in Shanghai, China, China Eastern Airlines Corporation Ltd (SHA:600115) -- http://www.ce-air.com/-- is principally engaged in the operation of civil aviation, including the provision of passenger, cargo, mail delivery and other extended transportation services. It is the primary air carrier serving Shanghai. During the year ended December 31, 2007, the Company operated a total of 467 routes, of which 351 were domestic routes, 18 were Hong Kong routes (including one cargo route) and 98 were international routes (including 14 international cargo routes). It operated approximately 6,275 scheduled flights per week, serving a total of 138 foreign and domestic cities. It operates in two segments: passenger (which includes cargo carried by passenger flights), and cargo and logistics. In 2007, the Company added 20 aircraft to its fleet. CHINA MERCHANTS: Denies US$60 Mln. Loss on Fortis Investment ------------------------------------------------------------ China Merchants Bank (CMB) denied reports that it lost US$60 million on investments with financial services Fortis, the People's Daily Online reports. Citing a report on Hong Kong's ET Net, the Daily Online relates handouts in the People's Congress in Guangdong Province revealed that Ping An Insurance (Group) Co and Guangdong Development Bank had also booked losses of CNY22.7 billion (US$3.34 billion) and US$20 million in Fortis, respectively. China Merchants Bank -- http://www.cmbchina.com/-- is the second largest bank among China's 12 nationwide shareholding commercial banks. It was established in 1987 and listed on the Shanghai Stock Exchange in 2002. The Ministry of Communications-owned China Merchants Group is the bank's main shareholder with a 26% stake (through various companies). The bank had 410 banking outlets nationwide and 17,829 employees at end-2004. * * * The company continues to carry Moody's Investors Service's Baa3/P- 3 long-term/short-term foreign currency deposit ratings and D+ bank financial strength rating. The affirmation follows CMB's planned purchase of Wing Lung Bank ("WLB", C+/A2). The ratings' outlook remains stable. SANLU GROUP: Beijing Sanyuan to Bid for Firm's Assets ----------------------------------------------------- Beijing Sanyuan Foods Co said it will bid for the assets of Sanlu Group Co, which was declared bankrupt last Thursday, Feb. 12, Shanghai Daily reports citing Sanyuan's listed arm in a statement to the Shanghai Stock Exchange. According to the report, Sanyuan said it hopes to expand outside of Beijing and into Sanlu's old markets in neighboring Hebei and Shandong provinces. Sanyuan's Hebei branch as well as the main Sanyuan group will jointly bid for the assets, the company said. Sanyuan, as cited by the report, said it will raise CNY800 million (US$117 million) to CNY1 billion through a private stock offering to expand its Hebei operations and bid for the assets. Citing Xinhua News Agency, the Daily says Sanlu's real estate holdings, buildings and equipment will be auctioned on March 4, along with its investment rights and interests in three other dairy firms. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 16, 2009, China Daily said Sanlu Group Co. was declared bankrupt by a Chinese local court on Thursday, Feb. 12, 2009. According to the Daily, the Intermediate People's Court of Shijiazhuang, capital of the northern Hebei Province, accepted the bankruptcy petition for Sanlu, who faced a CNY1.1 billion (US$161 million) debt, last December. The TCR-AP reported on Dec. 29, 2008 that the People's Daily Online said according to Wang Jianguo, spokesman for the city government of Hebei provincial capital Shijiazhuang, the petition was made by the Heipingxi Road branch of Shijiazhuang City Commercial Bank - a creditor of Sanlu. Sanlu, according to the Daily Online, stopped production on Sept. 12. As of Oct. 31, the group recalled more than 10,000 tonnes of baby formula products worth nearly CNY1 billion. On September 25, 2008, the Troubled Company Reporter-Asia Pacific reported that the number of children in China affected by melamine-contaminated milk has reached 53,000, with Sanlu's products found to contain the highest levels of the chemical. Melamine is used to make plastics and fertilizer, and can cause kidney stones and lead to kidney failure when consumed. About Sanlu Group Sanlu Group is a Chinese dairy products company based in Shijiazhuang, the capital city of Hebei Province. The state-owned company is one of the oldest and most popular brands of infant formula in China. Sanlu is 43% owned by Fonterra. ================ H O N G K O N G ================ ASIA ALUMINUM: Discloses Proposed Debt Tender Offer --------------------------------------------------- Asia Aluminum Holdings Limited ("AAH") and AA Investments Company Limited ("AAI") said they intend to commence a tender offer and consent solicitation for: -- any and all of AAH's outstanding US$450,000,000 8.00% Senior Notes due 2011 (the "AAH Notes"); -- any and all of AAI's outstanding US$355,000,000 12.00% Senior PIK Notes due 2012 and AAI's outstanding US$180,000,000 14.00% Senior PIK Notes due 2012 together, the "PIK Notes") as well as 1,706,987 Warrants originally issued with the PIK Notes ("Warrants"); and -- solicitation of consents to a one-time waiver of, and amendments to, certain of the provisions of, the indentures, as amended and supplemented, under which the AAH Notes and the PIK Notes were issued. The Group expects to offer up to US$275 per US$1,000 principal amount for AAH Notes and up to US$135 per US$1,000 principal amount of PIK Notes including Warrants. The AAH Notes and the PIK Notes are listed on the Singapore Exchange Securities Trading Limited. Currently, there are US$450,000,000 principal amount of AAH Notes outstanding and US$727,529,000 principal amount of PIK Notes outstanding (which amount includes PIK Notes issued as payment-in- kind for interest). The Group expect to commence the Tender Offer and Consent Solicitation next week. Background Due largely to adverse global macroeconomic conditions, the Group have experienced declining revenues and cash flow as well as increasing pressure on available working capital facilities at a time when the Group need increased financing to enable their aluminum rolled products manufacturing facility to begin commercial production. The deteriorating conditions have adversely affected the Group's business in various ways, including: -- a decline of approximately 20% in sales volume for the six months ended December 31, 2008 as compared to the same period in 2007; -- higher cost of sales per tonne; -- increased overall expenses as a result of preparing their aluminum rolled products manufacturing facility for commercial production; -- significantly longer accounts receivable days as many of their customers have also experienced constraints on working capital; and -- increasing difficulties maintaining sufficient sources of working capital financing. AAI's consolidated EBITDA for the year ended June 30, 2008 was HK$1,121.0 million. For the six months ended December 31, 2008, principally as a result of market conditions, the Group's sales volumes declined by approximately 20%, while their cost of sales per tonne increased by approximately 29% and their cost structure overall increased significantly as they continued to prepare their aluminum rolled products manufacturing facility for commercial production. These figures are compared to the six months ended December 31, 2007. As a result of these and other factors, the Group's EBITDA declined significantly for the six months ended December 31, 2008. The Group expect their EBITDA will continue to decline unless market conditions improve significantly, the Group are able to access sufficient working capital and they are able to commence commercial production at their aluminum rolled products manufacturing facility. Maintaining sufficient EBITDA is crucial to ensure they are able to finance their day-to-day operations, service their aluminum rolled products expansion project and service their debt. Although cash generated from the Group's operations and other sources has decreased, they continue to require substantial capital. As financial institutions tighten their lending policies, the Group said they have not been able to increase their credit facilities consistent with the expansion of their operations as they have done in past years, and expect such situation to continue to worsen if they cannot successfully restructure or refinance their existing indebtedness. Moreover, the commissioning of their aluminum rolled products manufacturing facility has been delayed for several months, which in turn has further contracted the Group's working capital due to their inability to commence production to generate cash from operations. The Group incurred significant additional indebtedness through the issuance of the PIK Notes in May 2006 to fund the privatization of Asia Aluminum Holdings Limited. As of December 31, 2008, AAH's consolidated total liabilities were HK$12,390.5 million and total borrowings (including bank and other loans, trust receipt loans and import loans and the AAH Notes) were HK$8,287.4 million. As of the same date, AAI's consolidated total liabilities were HK$17,737.3 million and total borrowings (including bank and other loans, trust receipt loans and import loans, the AAH Notes and the PIK Notes) were HK$14,094.5 million. Proposed Restructuring To address this situation, the Group have been exploring, for several months, various options to restructure their balance sheet in an attempt to strengthen their overall capital and working capital position. Unfortunately, other options have not progressed on the timetable necessary to meet the Group's working capital needs and strengthen their financial position. As such, the Group's management has prepared the Tender Offer and Consent Solicitation to restructure their existing indebtedness. The Group have also pursued or are pursuing related initiatives: -- the Group have received an indication of general support from a local PRC Municipal Government to assist the Group with obtaining adequate financing for the Tender Offer and Consent Solicitation and for their operations; -- the Group have received letters of intent from two of their major existing PRC bank creditors regarding a preliminary agreement to make loans to refinance their existing indebtedness and to provide the Group with additional financing which may increase their total indebtedness up to RMB6.0 billion, provided that the Group successfully complete the Tender Offer and Consent Solicitation and satisfy other conditions; and -- the Group have been maintaining regular discussions with their non-PRC bank and trade creditors regarding the renewal and extension of existing credit facilities. Completion of the Tender Offer and Consent Solicitation is crucial to the Group's restructuring efforts and accordingly, their ability to continue as an operating company. If the Group fail to consummate the Tender Offer and Consent Solicitation, their bank creditors may demand immediate repayment of all outstanding amounts and refuse to approve further drawdowns under their existing working capital facilities. Without access to sufficient working capital financing, the Group project that their revenue and cash generated from operations would be insufficient to fund expected operating expenses and required capital expenditures, including commencing commercial production at their aluminum rolled products manufacturing facility, as well as to service their existing indebtedness. The Group's Chairman, Mr. Kwong Wui Chun, has been making plans to use his equity interest in AAI to support the Group's restructuring efforts. In consideration for a local Municipal Government's support for the Group restructuring, Mr. Kwong has been in discussions with the government with respect to the transfer of 25.0% of AAI's equity owned by him to an entity controlled by the government upon the completion of the Group's restructuring. In addition, the Group expect Mr. Kwong to transfer an additional 28.4% of AAI's equity to an escrow account following the completion of the Tender Offer and Consent Solicitation: (i) up to 10.0% of AAI's equity for the benefit of management and employees (excluding Mr. Kwong) to encourage their continuing services to the Group, subject to certain performance thresholds; and (ii) the remainder to be reserved for subsequent private or public sale to one or more equity investors, which proceeds are expected to be used to reduce the Group's indebtedness other than any debt owed to Mr. Kwong. The Group also expect Mr. Kwong to transfer an additional 14.0% of AAI's equity to OK Spring Roll Limited Partnership, an entity owned by a three-member consortium led by ORIX Corporation ("OK Spring Roll"), in exchange for OK Spring Roll's existing 25.01% equity interest in one of the Group's subsidiaries following the completion of the Tender Offer and Consent Solicitation. Upon completion of the Tender Offer and Consent Solicitation, and simultaneous closing of the transactions described above, the Group anticipate Mr. Kwong's equity ownership in AAI will be 30.0%, representing the minimum level required under the Indentures and certain loan facilities to avoid triggering a "Change of Control" and representing a significant decrease from his current equity ownership position. Further, the shareholder loan of approximately US$61.2 million granted by Mr. Kwong to AAI in connection with AAH's privatization in May 2006 will be cancelled upon the completion of the Tender Offer and Consent Solicitation and the transactions described above. About Asia Aluminum Headquartered in Kowloon, Hong Kong, Asia Aluminum Holdings Limited -- http://www.asiaalum.com� manufactures aluminum extrusion and stainless steel products serving the construction, transportation, industrial, and home-improvement sectors. It also provides design and testing services for aluminum products and is building its capabilities in the aluminum flat-rolled products sector. Asia Aluminum has five aluminum extrusion plants in Nanhai and another in Zhaoqing. Though it once was publicly traded, the company was taken private by founder and chairman Kwong Wui Chun in 2006. Asia Aluminum announced plans to go public again in 2009. * * * As reported by the Troubled Company Reporter-Asia Pacific on Dec. 26, 2008, Moody's Investors Service downgraded to B2 from B1 the corporate family rating and to B3 from B2 the senior unsecured bond ratings of Asia Aluminum Holdings Ltd's. The outlook for the ratings remains negative. The TCR-AP reported on Troubled Company Reporter on Dec. 8, 2008, that Standard & Poor's Ratings Services said that it had lowered its long-term corporate credit rating on Asia Aluminum Holdings Ltd. to 'B' from 'B+'. The outlook is negative. At the same time, Standard & Poor's lowered its issue rating on the company's US$450 million senior unsecured notes due 2011 to 'B-' from 'B+'. CENTRAL CHINA ET AL: Members to Hold Meeting on March 9 ------------------------------------------------------- A final meeting will be held on March 9, 2009, for the members of: -- Central China I.T. Limited at 10:00 a.m.; -- Central China International Limited at 10:30 a.m.; -- Chainstoreonline.Net Limited at 11:00 a.m.; -- Excel Talent Enterprise Limited at 11:30 a.m.; -- Honor Unity Development Limited at 12:00 noon; and -- Mansfield Limited. The meeting will be held at 1904, Hong Kong Club Building, 3A Chater Road, in Central, Hong Kong. CHEUNG FAT: Members to Hear Wind-Up Report on March 6 ----------------------------------------------------- The members of Cheung Fat Piece-Goods Limited will meet on March 6, 2009, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at the Ground Floor, 111 Ki Lung Street, in Shamshuipo, Kowloon. CITIC PACIFIC: S&P Raises Corporate Credit Rating to 'BB+' ---------------------------------------------------------- In the article published earlier, text was missing from the final sentence. A corrected version follows. Standard & Poor's Ratings Services said that it had raised its long-term corporate credit rating on CITIC Pacific Ltd. to 'BB+' from 'BB'. The outlook is stable. At the same time, Standard & Poor's also raised its issue rating on the senior unsecured notes issued by CITIC Pacific Finance (2001) Ltd. to 'BB+' from 'BB'; the notes are guaranteed by CITIC Pacific. Both ratings were removed from CreditWatch, where they were placed with developing implications on Nov. 14, 2008. They were originally placed on CreditWatch with negative implications on Oct. 21, 2008. The upgrade reflects the strengthened linkage and support for CITIC Pacific from its parent, CITIC Group (BBB-/Stable/A-3). In December 2008, CITIC Group injected Hong Kong dollar 11.625 billion in capital into CITIC Pacific and assumed a major portion of the company's open positions in its loss-making foreign exchange derivatives. CITIC Group also became the controlling shareholder of CITIC Pacific, with a 57.56% stake. The rating action follows S&P's affirmation earlier of all the ratings on CITIC Group. According to Standard & Poor's rating methodology, the rating on CITIC Pacific is based on its standalone credit quality and the benefits it derives from being strategically important to the wider CITIC Group. The rating is one notch below that on CITIC Group because CITIC Pacific is not yet a core part of the conglomerate. "The standalone credit quality of CITIC Pacific has weakened as a result of its derivative losses. The company's credit metrics are likely to deteriorate further in 2009 due to the cyclical nature of its core businesses--iron ore, special steel, and property development--and their high capital expenditure," said Mr. Lu. Upon completion of the transaction with CITIC Group on Dec. 24, 2008, CITIC Pacific's net assets were reduced by about HK$5 billion; it had net assets of HK$61 billion as at June 30, 2008. To fund key projects, S&P expects CITIC Pacific's ratio of total debt to total capital to rise to more than 50% in 2009 from 38.6% as at June 30, 2008. CITIC Pacific's profitability and ability to generate cash flow (including dividend income) are also likely to deteriorate in 2009 due to the difficult operating conditions. S&P expects the company to continue to generate negative free cash flow in the coming year. The large derivate losses have also revealed a gap in CITIC Pacific's internal controls and risk management. Despite initiatives to improve, this weakness continues to undermine the rating, given that the track record in risk management of the company's parent CITIC Group is also weak. CITIC RESOURCES: S&P Downgrades Corporate Credit Rating to 'BB' --------------------------------------------------------------- Standard & Poor's Ratings Services said that it had lowered the long-term corporate credit rating on CITIC Resources Holdings Ltd. to 'BB' from 'BB+'. The outlook on the rating is stable. At the same time, Standard & Poor's also lowered the issue rating on the seven-year US$1.0 billion senior unsecured notes issued by CITIC Resources Finance (2007) Ltd. to 'BB' from 'BB+'; the notes are guaranteed by CRH. All the ratings were removed from CreditWatch, where they had been placed with negative implications on Oct. 21, 2008. "The downgrades are primarily due to CRH's weakening standalone credit quality as a result of the sharp decline in demand and prices for commodities. In addition, production volume at CRH's oil field in Kazakhstan is significantly lower than S&P expected," said Standard & Poor's credit analyst Lawrence Lu. The rating also factors in the strong support and linkage the company derives from being a strategically important subsidiary of CITIC Group (BBB-/Stable/A-3), the ratings on which S&P affirmed earlier. In S&P's opinion, CRH's profitability and cash flow generation ability will remain weak in 2009, given the significant drop in crude prices and the high cost structure of its oil fields. Production volume fell at its key oil field in Kazakhstan, while lifting costs rose steeply. High realized crude prices in the first half of 2008 partly alleviated the risks. Management has started to reduce costs and cut capital expenditure programs amid the sharp drop in cash flow generation from operations. While these initiatives could conserve capital and maintain liquidity over the next 12 months, it suggests production volumes in 2009 may not be able to rise higher than those in 2008. High volatility in commodity prices and foreign exchange markets are significant risks to CRH's Australia trading unit, which accounted for about 51% of the company's revenue and 6% of its operating profit in the first half of 2008. This, together with softening demand in its key market of China, will compound the risks of lower EBITDA and cash flow generation for CRH. CRH's credit risk profile is weakening. S&P expects CRH's debt level to increase in 2009 as the company plans to draw down the remaining US$130 million of a syndication loan. As a result, its balance sheet leverage, as measured by a ratio of total debt to total capital, should continue to be above 60%, despite a HK$2.6 billion rights issue in 2008. Under S&P's base-line assumptions for major commodity prices, S&P expects CRH's EBITDA interest coverage will fall below 2x in 2009, its ratio of funds from operations to total debt will fall to close to 10%, and its ratio of total debt to EBITDA will increase sharply to over 7x, compared with S&P's expectations for 2008 of 3.5x, 15%, and 4.5x, respectively. GIANT CHANNEL: Inability to Pay Debts Prompts Wind-Up ----------------------------------------------------- At an extraordinary general meeting held on November 17, 2008, the members Giant Channel International Limited resolved to voluntarily wind up the company's operations due to its inability to pay debts when it fall due. The company's liquidator is: Tseng Yih Sun Kingsford Industrial Centre, Unit 2, 8th Floor No. 13 Wang Hoi Road Kowloon Bay, Hong Kong GIANT SHARP: Members to Hear Wind-Up Report on March 10 ------------------------------------------------------- The members of Giant Sharp Limited will meet on March 10, 2009, at 10:00 a.m., to hear the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Tsoi Hak Kong Herbert Melbourne Plaza, Room 2008 3 Queen's Road Central Hong Kong HANG YUE: Members to Hear Wind-Up Report on March 10 ---------------------------------------------------- The members of Hang Yue Printing Company Limited will meet on March 10, 2009, at 11:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Wong Yik Sum Block F, 5th Floor, No. 54 Kai Yuen Street North Point, Hong Kong HENKEL ADHESIVES: Sole Member to Receive Wind-Up Report on March 6 ------------------------------------------------------------------ The sole member of Henkel Adhesives (HK) Limited will hear the liquidator's report on the company's wind-up proceedings and property disposal on March 6, 2009, at 10:00 a.m. The meeting will be held at the 8th Floor of Gloucester Tower, The Landmark, in 15 Queen's Road Central, Hong Kong. JOY FORCE: Creditors Hold Meeting --------------------------------- On February 13, 2009, the creditors of Joy Force Limited held a meeting and discussed the purposes set out in Sections 241, 242, 243, 244, 251 (1)(a), 255A(2) and 283 of the Companies Ordinance. KELLETT ESTATES: Creditors' Proofs of Debt Due on February 24 ------------------------------------------------------------- The creditors of Kellett Estates Limited are required to file their proofs of debt by February 24, 2009, to be included in the company's dividend distribution. The company's liquidator is: Ngan Lin Chun Esther 1902 MassMutual Tower 38 Gloucester Road Wanchai, Hong Kong MARRIAGE MINISTRIES: Members to Hear Wind-Up Report on March 9 -------------------------------------------------------------- The members of Marriage Ministries Limited will meet on March 9, 2009, at 10:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The meeting will be held at Room 2202, 22nd Floor of Sing Pao Building, in 101 King's Road, Hong Kong. SEA CDO: Moody's Downgrades Ratings on $20 Mil. Notes to 'B2' ------------------------------------------------------------- Moody's Investors Service has downgraded its rating of one class of notes issued by Sea CDO Limited. The downgrade concludes the rating review for possible downgrade that had started on 24 December 2008. The transaction is a defensive investor-managed synthetic CDO referencing corporate names. According to Moody's, the rating action is the result of Moody's updated key assumptions for rating corporate synthetic CDOs announced on 15 January 2009 combined with updated price assumption on Tribune Company. The transaction also has a significant exposure to other corporate names which continue to deteriorate in the current economic environment. This will weigh on the rating of the tranche in this transaction. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports below: -- Moody's Approach To Rating Corporate Collateralized Synthetic Obligations (December 2008) -- Moody's updates key assumptions for rating corporate synthetic CDOs (January 2009) The rating action is: Sea CDO Limited: (1) US$20,000,000 Secured Floating Rate Credit Linked Note due 2010, Series 2005-5 -- Current Rating: B2 -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: December 24, 2008; downgraded from Baa1 to Baa2 and placed under review for possible downgrade U-RIGHT FASHION: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------------- On January 21, 2009, the sole shareholder of U-Right Fashion Limited resolved to voluntarily wind up the company's operations due to its inability to pay debts when it fall due. The company's liquidators are: Lai Kar Yan (Derek) Darach E. Haughey One Pacific Place, 35th Floor 88 Queensway Hong Kong * White & Case LLP Partners With Hong Kong's Laracy Gall -------------------------------------------------------- White & Case LLP has teamed up with Hong Kong-based dispute resolution law firm Laracy Gall, according to Bloomberg News. The tie-up will focus on insolvencies with a "center of gravity" in Hong Kong, including businesses from throughout Asia with holding companies in the city, Bloomberg News says citing Laracy Gall founder Nick Gall. According to the news agency, Laracy Gall's insolvency experts will work with White & Case's banking, capital markets and private equity teams in the alliance. Both firms are preparing for a surge in insolvency cases as the current financial crisis push banks to curb lending putting companies' ability to repay debts at risk. Bloomberg News discloses Hong Kong's central bank warned more than HK$100 billion (US$12.9 billion) of syndicated loans will mature this year, risking defaults if companies are unable to refinance the debt. "It's a perfect storm," John Hartley, head of White & Case's Asia bank finance and restructuring practice, told Bloomberg News in an interview in Hong Kong. "There's a large amount of refinancing coming up, and capital is retreating with banks retracting lending and private equity and distressed opportunities funds facing redemptions." ========= I N D I A ========= BABY MEMORIAL: CRISIL Puts 'B+' Rating on Rs.600MM Long Term Loan ----------------------------------------------------------------- CRISIL has assigned its rating of 'B+/Stable' to the long term loan facility of Baby Memorial Hospital (BMH). Rs.600.00 Million Long Term Loan B+/Stable (Assigned) The rating reflects BMH's weak financial risk profile, and exposure to risks relating to single-location of operations. These weaknesses are, however, partially offset by BMH's established presence in Calicut, and successful mitigation of employee attrition risks. Outlook: Stable CRISIL expects BMH's financial risk profile to weaken over the medium term on account of its high debt-funded capital expenditure (capex). The outlook may be revised to 'Negative' if the hospital takes on larger-than-anticipated debt to fund capex, or faces time or cost overruns in the ongoing capex programme. Conversely, the outlook may be revised to 'Positive' if there is substantial capital infusion. About Baby Memorial BMH, started by Dr. K G Alexander in 1987, is one of the biggest hospitals in Calicut. The hospital is a partnership firm, with Dr. Alexander and members of his family as partners. The hospital has a current capacity of 480 beds, and proposes to increase the capacity by 300 beds over the medium term. BMH has positioned itself as a multi-specialty, tertiary care referral hospital, and offers services such as anaesthesiology and critical care, cardiology, neurosurgery, oncology, paediatrics and cosmetology. BMH also offers post-graduate courses for doctors and degree as well as diploma courses in nursing. For 2007-08 (refers to financial year, April 1 to March 31), BMH reported a profit after tax (PAT) of Rs.20.9 million on net sales of Rs.326.2 million, as against a PAT of Rs.10.5 million on net sales of Rs.251.5 million for 2006-07. KANAK EXPORTS: CRISIL Rates Various Bank Facilities at 'P4' ----------------------------------------------------------- CRISIL has assigned its ratings of 'P4' to the various bank facilities of Kanak Exports (Kanak). Rs.172.50 Million Post shipment Credit P4 (Assigned) Rs.43.50 Million Export Packing Credit P4 (Assigned) The ratings reflect Kanak's moderate financial risk profile and its modest scale of operations. These weaknesses are, however, partially offset by Kanak's established presence in the diamond export market and the extensive industry experience of its promoters. About Kanak Exports Kanak Exports was incorporated in 1986 as a partnership firm by Mr. Muljibhai Dhameliya and his family members. The firm is engaged in the export of cut and polished diamonds. Mr. Muljibhai has an experience of more than 40 years in the diamond industry. Currently, one of the partners, Mr. Kanak Dhameliya (son of Mr. Muljibhai) looks after the entire marketing and finance operations. Mr. Kanak has an experience of more than 15 years in the diamond industry. For 2007-08 (refers to financial year, April 1 to March 31), Kanak reported a profit after tax (PAT) of Rs.12.9 million on net sales of Rs.665.4 million, as against a PAT of Rs.12.5 million on net sales of Rs.657.0 million for 2006-07. KUNNAM GRANITE: CRISIL Rates Rs.12.0 Mln Long Term Loan at 'B-' --------------------------------------------------------------- CRISIL has assigned its ratings of 'B-/Negative/P4' to the various bank facilities of Kunnam Granite Works (Kunnam Granites). Rs.12.0 Million Long Term Loan B-/Negative (Assigned) Rs.50.0 Million Export Packing P4 (Assigned) Credit Limits Rs.40.0 Million FBDN (Non LC) P4 (Assigned) Limits Rs.30.0 Million FBDN (LC) Limits P4 (Assigned) Rs.10.0 Million Stand By Line of P4 (Assigned) Credit Limits Rs.10.0 Million Bank Guarantee P4 (Assigned) Limits The ratings reflect Kunnam Granites' stretched financial risk profile on account of current losses in derivative transactions, leading to deterioration in net worth and weak debt protection measures. The ratings also factor in the firm's small scale of operations, and exposure to risks relating to the fragmented nature of the granite and stone contract works industry. These weaknesses are, however, partially offset by Kunnam Granites' established track record in quarrying and export of granite blocks. Outlook: Negative CRISIL believes that continued losses on derivative transactions will constrain Kunnam Granites' financial risk profile over the medium term. The ratings may be downgraded if Kunnam Granites faces larger-than-expected losses in derivative contracts, leading to further deterioration in capital structure and debt protection measures. Conversely, the outlook may be revised to 'Stable' if Kunnam Granites curtails its losses from derivative transactions, or brings in additional capital to improve its capital structure and debt protection measures, thus enhancing its financial risk profile. About Kunnam Granites Set up by Mr.G.Rajaretnam as a proprietorship firm in 1987, Kunnam Granites subsequently converted into a partnership firm, with Mr.G.Rajaratnam's sons, Mr. Saravanan and Mr. Srinivasan being inducted as partners. The firm is engaged in quarrying and exports of a variety of granite blocks, and owns two quarries in Warangal (Andhra Pradesh). The firm also deals with other quarry owners in South India (Andhra Pradesh, Tamil Nadu, and Kerala). It purchases granite from these quarries for exports. The granite procured from these quarries account for 95 per cent of the firm's total revenue. For 2007-08, (refers to financial year, April 1 to March 31) Kunnam Granites reported a profit after tax (PAT) of Rs.8.8 million on net sales of Rs.368.6million, as against a PAT of Rs.5.6 million on net sales of Rs.426.5 million for 2006-07. MITTAL CLOTHING: CRISIL Rates Rs.8.9MM Long Term Loan at 'BB' ------------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Stable/P4' to the bank facilities of Mittal Clothing Company (Mittal Clothing). Rs.8.9 Million Long Term Loan BB/Stable (Assigned) Rs.41.1 Million Proposed Long BB/Stable (Assigned) Term Bank Facility Rs.85.0 Million Export Packing P4 (Assigned) Credit Limits Rs.30.0 Million Foreign Bill P4 (Assigned) Discounting Limits Rs.15.0 Million Stand By Line of P4 (Assigned) Credit Limits Rs.15.0 Million Letter of Credit P4 (Assigned) Limits Rs.5.0 Million Bank Guarantee Limits P4 (Assigned) The ratings reflect Mittal Clothing's small scale of operations and low net worth, customer and geographic concentration in revenues, and exposure to fluctuation in foreign exchange rates. These weaknesses are mitigated by Mittal Clothing's healthy business risk profile, marked by its established presence in garment exports, and healthy financial risk profile. Outlook: Stable CRISIL believes that Mittal Clothing will maintain its established market presence on the back of repeat and regular orders from its long-standing customers. The outlook may be revised to 'Positive' if the company's sales and margins improve substantially. Conversely, the outlook may be revised to 'Negative' in case of large-scale order cancellations or a significant decline in margins, or if the company incurs a large, debt-funded capital expenditure, causing sharp deterioration in its capital structure. About Mittal Clothing Incorporated in 1996 as a partnership firm by Mr. Gajanand Mittal and his sons, Mittal Clothing manufactures and exports knitted and woven garments. It has a total installed manufacturing capacity of 50 million pieces per annum, spread across three facilities in Bangalore. It also has a weaving unit, at Tirupur. For 2007-08 (refers to financial year, April 1 to March 31), Mittal Clothing reported a profit after tax (PAT) of Rs.45.5 million on net sales of Rs.428.9 million, as against a PAT of Rs.38.6 million on net sales of Rs.394.5 million in the previous year. PREMIER MARINE: CRISIL Assigns 'B-' Rating on Rs.12.0 Mln LT Loan ----------------------------------------------------------------- CRISIL has assigned its ratings of 'B-/Stable/P4' to the various bank facilities of Premier Marine Foods (PMF). Rs.12.0 Million Long Term Loan B-/Stable (Assigned) Rs.50.0 Million Packing Credit P4 (Assigned) Facilities* Rs.70.0 Million Bill Discounting P4 (Assigned) * Including Ad-hoc Limit of Rs.10 million The ratings reflect PMF's weak financial risk profile, and exposure to risks that are inherent to the seafoods industry. These weaknesses are, however, partially offset by the benefits that PMF derives from the vast experience of its promoters. Outlook: Stable CRISIL believes that PMF will maintain a stable business risk profile backed by established relationships with customers. The outlook may be revised to 'Positive' if the company significantly scales up its operations and diversifies its product profile, leading to better-than-expected cash accruals and substantial improvement in financial risk profile. Conversely, the outlook may be revised to 'Negative' if the company undertakes large, debt-funded capital expenditure (capex) leading to deterioration in its capital structure, or if substantial decline in volumes or margins result in a weaker financial risk profile. About Premier Marine PMF, a partnership firm, was established in 2002 by Mr. A Mustaffa and his family. The firm is a Kerala-based exporter of sea food, mainly cuttlefish, octopus and squid. It sells its products entirely in the exports market, especially in Italy and USA. It has capacity to manufacture around 300 tonnes per month of processed sea foods. Mr. M Nizam, son of Mr. A Mustaffa is the current managing partner of the firm. For 2007-08 (refers to financial year, April 1 to March 31), PMF reported a profit after tax (PAT) of Rs. 0.7 million on net sales of Rs. 167.5 million, as against a loss of Rs. 0.2 million on net sales of Rs. 226.4 million for 2006-07. UNITED CONVEYOR: CRISIL Rates Rs.215MM Cash Credit Limits at 'BB' ----------------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Stable/P4' to the various bank facilities of United Conveyor Corporation (India) Pvt Ltd (UCCPL). Rs.215 Million Cash Credit Limits * BB/Stable (Assigned) Rs.235 Million Letter of Credit & P4 (Assigned) Bank Guarantee ^ *Includes proposed limit of Rs.175 million ^ Includes proposed limit of Rs.150 million The ratings reflect UCCPL's constrained financial risk profile, large working capital requirements, and susceptibility to movements in the prices of raw materials. These weaknesses are, however, partially offset by UCCPL's moderate business profile, and the support it derives from parent, United Conveyor Corporation, Waukegan, Illinois, USA (UCC-USA). Outlook: Stable CRISIL believes that UCCPL will maintain a stable business risk profile, and strong customer base. The outlook may be revised to 'Positive' if the company reports a substantial increase in revenues, or improvement in net worth through equity infusions. Conversely, the outlook may be revised to 'Negative' if the company reports lower-than-expected profitability, or undertakes significant debt-funded capital expenditure. About United Conveyor UCCPL, a subsidiary of UCC-USA manufactures pneumatic conveying and ash handling systems, which are used mainly in thermal power plants and cement industry. Its factory at Uluberia (West Bengal) manufactures patented products for UCC-USA. For 2007-08 (refers to financial year, April 1 to March 31),UCCPL reported a net loss of Rs.204 million on net sales of Rs.648 million, as against a net loss of Rs.7 million on net sales of Rs.427 million for 2006-07. * INDIA: Autoparts Suppliers' Creditworthiness Down, CRISIL Says ---------------------------------------------------------------- CRISIL's rating actions on auto-component suppliers since the third quarter of 2008-09 (refers to financial year, April 1 to March 31) reflect the view that the credit quality of the players in the sector is deteriorating. The source of this decline is the weakness in the user automotive industry, which has led to reduced off-take by domestic original equipment manufacturers (OEMs) and a slowdown in export demand. Although component suppliers have sought to cut costs and reduce capital spending to cope with this pressure, CRISIL believes that these measures are unlikely to yield results quickly enough to offset the impact on credit quality. According to Pawan Agrawal, Director, Corporate and Government Ratings, "For many auto component suppliers, we see rising pressure on revenues and profitability, lengthening working capital cycles, and increasing gearing levels. These prospects have led CRISIL to lower ratings or revise outlooks downwards on twelve suppliers since October 2008. Further, ratings on 18 of the 56 auto-component suppliers that CRISIL rates carry 'negative' outlooks." Demand from OEMs and the export market (which account for 60 per cent and 14 per cent, respectively, of component suppliers' revenues) has declined considerably in recent months. The weak demand has resulted in growing inventories with component suppliers. Further, the lengthening of payment cycles by OEMs is hurting component suppliers' liquidity. CRISIL believes that the pressure will be especially severe for suppliers to the CV and passenger car segments, where demand has declined significantly. The combination of these factors will also offset any immediate benefits from the recent decline in metal prices. Auto-component suppliers are taking steps to minimise the effect of weak demand on their business and financial profiles. CRISIL- rated component suppliers could reduce their aggregate annual capital investment by as much as 40 per cent in 2008-09 and 2009- 10, from Rs.22 billion incurred in 2007-08. Also, to cut costs, auto-component suppliers have reduced working days, announced maintenance holidays for plants, laid off temporary workers, and cut employee compensation. Sudip Sural, Head, Corporate and Government Ratings, adds: "More rating changes are possible over the near to medium term. We expect the average gearing levels for our rated component suppliers to remain at more than 1.2 times over the near to medium term, as against 0.9 times as on March 31, 2007; this is because reduced accruals, and debt-funding of inventories, will preclude improvement in gearing. Component suppliers with healthy segmental revenue diversification and a presence in the after- market will be better placed than other players to withstand the current downturn in the sector. Similarly, component suppliers with low levels of debt will fare better than those that are highly leveraged." ================= I N D O N E S I A ================= EXCELCOMINDO PRATAMA: Cancels Plans to Sell Tower Assets -------------------------------------------------------- PT Excelcomindo Pratama Tbk (XL) has cancelled plans to sell its portfolio of 7,000 towers, cellular-news reports. The company, the report relates, now plans to raise funds for its network expansion through rights issue. "The cancellation decision was taken after the offered prices did not reach the expected levels because it's hard for potential investors to obtain financing under the current circumstances," cellular-news quoted XL Corporate Secretary Ike Andriani as saying. According to the report, the company had been looking to raise $675 million from the sale of the towers, and expects to spend roughly the same amount this year on its network CAPEX. About Excelcomindo Pratama Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk -- http://www.xl.co.id/-- provides wireless telecommunications services, leased lines and corporate services, which include Internet Service Provider and Voice over Internet Protocol services. In addition, Excelcomindo provides voice, data and other value-added cellular telecommunications services. Its product lines include jempol, bebas and xplor. The company also provides services that allow its customers to purchase electronic voucher reloads at all of its centers and outlets, automated teller machines of various major banks and through its all centers. Excelcomindo starter packs and voucher reloads are also sold by independent retailers. * * * The Troubled Company Reporter-Asia Pacific reported on September 2, 2008, that Fitch Ratings affirmed PT Excelcomindo Pratama Tbk's Long-term foreign currency and local currency Issuer Default Ratings at 'BB-'. The Outlook on the ratings is Stable. At the same time, Fitch has affirmed the rating on XL's outstanding senior unsecured notes programme at 'BB-'. On June 6, 2008, that Moody's Investors Service affirmed PT Excelcomindo Pratama Tbk's Ba2 local currency issuer rating and senior unsecured foreign currency rating. Concurrently, PT Moody's Indonesia has affirmed the company's national scale rating of Aa1.id. The outlook for all ratings is stable. ========= J A P A N ========= AMERICAN INT'L: Sells Thailand Banking Units to Bank of Ayudhya --------------------------------------------------------------- Bank of Ayudhya Public Company Limited (BAY) and American International Group Inc. (AIG) disclosed an agreement under which BAY will acquire AIG Retail Bank Public Company Limited and AIG Card (Thailand) Company Limited. The transaction, subject to the approval of the Bank of Thailand and BAY's shareholders, is expected to be completed in April 2009. Under the terms of the agreement, BAY will acquire 99.5 percent of the shares of AIG Retail Bank and 100 percent of AIG Card (Thailand) for a total consideration of THB2.055 billion or US$58.7 million (subject to closing valuation adjustment). In addition, inter-company loans totaling US$477 million from AIG will be repaid at closing. The combined assets of the two companies are expected to increase BAY's assets by approximately THB32 billion, which brings its current assets from approximately THB745 billion to THB777 billion. The transaction will increase BAY's retail loans by 14 percent and approximately 220,000 credit cards in force. Mr. Tan Kong Khoon, President and Chief Executive Officer, Bank of Ayudhya PCL, said, "We are pleased with this opportunity. The acquisition of AIG Retail Bank and AIG Card Thailand emphasizes Bank of Ayudhya's strategy in its inorganic growth plan. It is another step forward in accelerating the Bank's consumer banking business after the GECAL acquisition in 2008. The transaction will add 14 percent to our retail portfolio bringing BAY's retail loan portion to 36 percent. This acquisition will strengthen our leading position in Thailand's banking sector. At the same time, customers of AIG Retail Bank and AIG Card will benefit from an easy access to one-stop financial services and a wide range of consumer financial solutions offered by BAY." AIG Retail Bank President and CEO Charly Madan said, "AIG Retail Bank is an institution of the highest quality. We believe this outcome serves the best interests of both companies, as well as our valued customers, who we are confident will benefit from Bank of Ayudhya's financial strength, comprehensive distribution network and extended product lines. We are committed to continue providing excellent service to our customers during the transition period and we are thankful for their confidence and support." Blackstone Advisory Services provided financial advice to AIG in connection with AIG's global restructuring program. Deutsche Bank acted as financial advisor and Linklaters served as legal counsel to AIG on this transaction. Phatra Securities acted as financial advisor and Allen & Overy (Thailand) served as legal counsel to Bank of Ayudhya on this transaction. About Bank of Ayudhya Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co. Ltd. -- http://www.krungsri.com/-- provides a full range of banking and financial services. It is Thailand's fifth largest bank by assets and deposits. As of Dec. 31, 2007, it had total assets of THB651 billion. The bank offers corporate and personal lending, retail and wholesale banking; international trade financing asset management; and investment banking services to customers through its branches. It has branches in Hong Kong, Vietnam, Laos, and the Cayman Islands. About AIG Based in New York, American International Group Inc. (AIG) is the leading international insurance organization with operation in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. During the third quarter of 2008, requirements to post collateral in connection with AIG Financial Products Corp.'s credit default swap portfolio and other AIGFP transactions and to fund returns of securities lending collateral placed stress on AIG's liquidity. AIG's stock price declined from $22.76 on Sept. 8, 2008, to $4.76 on Sept. 15, 2008. On that date, AIG's long-term debt ratings were downgraded by Standard & Poor's, a division of The McGraw- Hill Companies, Inc., Moody's Investors Service and Fitch Ratings, which triggered additional requirements for liquidity. These and other events severely limited AIG's access to debt and equity markets. On Sept. 22, 2008, AIG entered into an $85 billion revolving credit agreement with the Federal Reserve Bank of New York and, pursuant to the Fed Credit Agreement, AIG agreed to issue 100,000 shares of Series C Perpetual, Convertible, Participating Preferred Stock to a trust for the benefit of the United States Treasury. At Sept. 30, 2008, amounts owed under the facility created pursuant to the Fed Credit Agreement totaled $63 billion, including accrued fees and interest. Since Sept. 30, AIG has borrowed additional amounts under the Fed Facility and has announced plans to sell assets and businesses to repay amounts owed in connection with the Fed Credit Agreement. In addition, subsequent to Sept. 30, 2008, certain of AIG's domestic life insurance subsidiaries entered into an agreement with the NY Fed pursuant to which the NY Fed has borrowed, in return for cash collateral, investment grade fixed maturity securities from the insurance subsidiaries. On Nov. 10, 2008, the U.S. Treasury agreed to purchase, through its Troubled Asset Relief Program, $40 billion of newly issued AIG perpetual preferred shares and warrants to purchase a number of shares of common stock of AIG equal to 2% of the issued and outstanding shares as of the purchase date. All of the proceeds will be used to pay down a portion of the Federal Reserve Bank of New York credit facility. The perpetual preferred shares will carry a 10% coupon with cumulative dividends. AIG and the Fed also agreed to revise the existing FRBNY credit facility. The loan terms were extended from two to five years to give AIG time to complete its planned asset sales in an orderly manner. The equity interest that taxpayers will hold in AIG, coupled with the warrants, will total 79.9%. At Sept. 30, 2008, AIG had $1.022 trillion in total consolidated assets and $950.9 billion in total debts. Shareholders' equity was $71.18 billion, including the addition of $23 billion of consideration received for preferred stock not yet issued. AMERICAN INT'L: To Sell Tokyo Office Building --------------------------------------------- American International Group Inc. (AIG) has decided to sell its office building in Tokyo's Otemachi business area, the Japan Today reports citing company officials. According to the report, the company officials said AIG will use proceeds from the sale of the office building to repay part of the public funds injected by the U.S. federal government. About AIG Based in New York, American International Group, Inc. (AIG) is the leading international insurance organization with operation in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. During the third quarter of 2008, requirements to post collateral in connection with AIG Financial Products Corp.'s credit default swap portfolio and other AIGFP transactions and to fund returns of securities lending collateral placed stress on AIG's liquidity. AIG's stock price declined from $22.76 on Sept. 8, 2008, to $4.76 on Sept. 15, 2008. On that date, AIG's long-term debt ratings were downgraded by Standard & Poor's, a division of The McGraw- Hill Companies, Inc., Moody's Investors Service and Fitch Ratings, which triggered additional requirements for liquidity. These and other events severely limited AIG's access to debt and equity markets. On Sept. 22, 2008, AIG entered into an $85 billion revolving credit agreement with the Federal Reserve Bank of New York and, pursuant to the Fed Credit Agreement, AIG agreed to issue 100,000 shares of Series C Perpetual, Convertible, Participating Preferred Stock to a trust for the benefit of the United States Treasury. At Sept. 30, 2008, amounts owed under the facility created pursuant to the Fed Credit Agreement totaled $63 billion, including accrued fees and interest. Since Sept. 30, AIG has borrowed additional amounts under the Fed Facility and has announced plans to sell assets and businesses to repay amounts owed in connection with the Fed Credit Agreement. In addition, subsequent to Sept. 30, 2008, certain of AIG's domestic life insurance subsidiaries entered into an agreement with the NY Fed pursuant to which the NY Fed has borrowed, in return for cash collateral, investment grade fixed maturity securities from the insurance subsidiaries. On Nov. 10, 2008, the U.S. Treasury agreed to purchase, through its Troubled Asset Relief Program, $40 billion of newly issued AIG perpetual preferred shares and warrants to purchase a number of shares of common stock of AIG equal to 2% of the issued and outstanding shares as of the purchase date. All of the proceeds will be used to pay down a portion of the Federal Reserve Bank of New York credit facility. The perpetual preferred shares will carry a 10% coupon with cumulative dividends. AIG and the Fed also agreed to revise the existing FRBNY credit facility. The loan terms were extended from two to five years to give AIG time to complete its planned asset sales in an orderly manner. The equity interest that taxpayers will hold in AIG, coupled with the warrants, will total 79.9%. At Sept. 30, 2008, AIG had $1.022 trillion in total consolidated assets and $950.9 billion in total debts. Shareholders' equity was $71.18 billion, including the addition of $23 billion of consideration received for preferred stock not yet issued. CLOVERIE PLC: Moody's Junks Ratings on JPY5 Bil. Notes ------------------------------------------------------ Moody's Investors Service has downgraded its rating of notes issued by Cloverie Plc. This is a managed synthetic CDO that references mainly global corporate entities. Moody's explained that the rating action taken is the result of (i) deterioration in the credit quality of the transaction's reference portfolio and the determination of loss of the reference portfolio due to credit events and (ii) the application of revised and updated key modeling parameter assumptions that Moody's uses to rate and monitor ratings of Corporate Synthetic CDOs. Moody's announced the changes to these assumptions in a press release published on January 15, 2009. The revisions affect key parameters in Moody's model for rating Corporate Synthetic CDOs: default probability, asset correlation, and other credit indicators such as ratings reviews and outlooks. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports below: -- Moody's Approach To Rating Corporate Collateralized Synthetic Obligations (December 2008) The rating action is: Cloverie Plc 1) Series 2007-26 JPY5,000,000,000 Floating Rate Portfolio Credit Linked Notes due 2014 -- Current Rating: Caa3 -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: September 18, 2008; Baa2, placed under review for possible downgrade Moody's Investors Service is a publisher of rating opinions and research. It is not involved in the offering or sale of any securities, nor is it acting on behalf of the offering party. This release is not a solicitation or a recommendation to buy, hold, or sell securities. CORSAIR (JERSEY): S&P Revises Rating on Series 52 Deal to 'BB+' --------------------------------------------------------------- Standard & Poor's Ratings Services corrected its ratings on the Corsair (Jersey) No. 2 Ltd. Series 52, Corsair (Jersey) No. 2 Ltd. Series 58, and Helium Capital Ltd. Series 58 transactions. The one-notch upward corrections follow a recent portfolio review of these transactions. S&P's review reflects previously revised correlations and default probability assumptions used in Standard & Poor's CDO Evaluator model. On Dec. 26, 2008, the notes issued under the Corsair (Jersey) No. 2 Ltd. Series 58 and Helium Capital Ltd. Series 58 transactions were downgraded to 'A-' and 'BBB+' from 'A+/Watch Neg' and 'A-/Watch Neg', respectively, as part of a larger review. Meanwhile, the notes issued under the Corsair (Jersey) No. 2 Ltd. Series 52 transaction were downgraded to 'BB/Watch Neg' from 'BBB-/Watch Neg' on Dec. 26, 2008, and the rating was then removed from CreditWatch on Jan. 16, 2009, also as part of a larger review. The correct ratings on these transactions are: Deal Name Rating --------- ------ Corsair (Jersey) No. 2 Ltd. Series 52 BB+ Corsair (Jersey) No. 2 Ltd. Series 58 A Helium Capital Ltd. Series 58 A- ES-CON JAPAN: JCR Lowers Senior Debts Rating from 'BB+' to 'BB-' ---------------------------------------------------------------- Japan Credit Rating Agency Ltd. (JCR) has downgraded the rating on senior debts, shelf registration, bonds and CP program of ES-CON Japan Ltd. from BB+, preliminary BB, BB and J-3 to #BB-/Negative, preliminary #B+/Negative, #B+/Negative and NJ, respectively, placing the long-term ratings under Credit Monitor with Negative direction. JCR does not place the rating on the CP program under Credit Monitor. Senior Debts: #BB-/Negative Shelf Registration: preliminary #B+/Negative Maximum: JPY25 billion Valid: two years effective from April 4, 2007 Issues Amount(bn) Issue Date Due Date Coupon Rating ------ --------- --------- -------- ------ ------ bonds no.1 JPY3 05/10/07 05/10/10 3.36% #B+/Negative bonds no.2 JPY5 06/26/07 06/26/09 3.02% #B+/Negative CP: NJ Maximum: JPY5 billion Backup Line: 0% ES-CON Japan announced on February 13, 2009 its downward revision of the earnings forecasts for FY2008 ended December 30, 2008. Its consolidated ordinary income was revised downward from the previous forecast of JPY3 billion to negative JPY1.5 billion. Its net income was also revised downward to negative JPY10.9 billion from 1.7 billion yen in black owing to the recording of the valuation loss on the inventory. JCR announced the downgrade of the rating on senior debts of the Company by one notch to BB+ with Negative rating outlook on October 24, 2008. JCR downgraded the rating at that time because JCR considered that the Company would have difficulty in maintaining the earnings base with the business model consisting of the two earnings pillars, real estate securitization business and condominium sales business. JCR was concerned about the influences on the future financing and cash management. The downward revision far exceeded the previous assumptions by JCR. The Company's operating performance seems to have deteriorated further. In particular, the incurring a net loss will impair the net assets significantly, weakening the financial base. Consequently, JCR downgraded the ratings on the Company. JCR placed the long-term ratings under Credit Monitor in order to follow sellout of the condominiums and securitized properties, cash management and relations with the financial institutions. NASHIMATSU CONSTRUCTION: S&P Cuts Corporate Credit Rating to 'BB' ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered to 'BB' from 'BB+' its long-term corporate credit and senior unsecured debt ratings on Nishimatsu Construction Co. Ltd. This ratings action was based on S&P's expectation that the negative impact of the company's weak corporate governance system and deteriorating business environment on its business and financial profile will be more pronounced than S&P initially anticipated. At the same time, Standard & Poor's placed the long-term corporate credit and senior unsecured debt ratings on the company on CreditWatch with negative implications. Factors contributing to the ratings action include the negative impact of Nishimatsu's deteriorating competitiveness, as well as the potential decline in its business performance, which can be attributed to a temporary suspension of public works assigned to the company for a three-month period commencing Jan. 26, 2009. Another factor contributing to the downgrade is the cancellation of orders placed by private companies in response to a series of alleged legal violations committed by Nishimatsu's former president. These supposed violations include a purported breach of the Foreign Exchange and Foreign Trade Control Law. An additional factor is the expected delayed submission of the company's financial statements for the third quarter of fiscal 2008 (Oct. 1 to Dec. 31, 2008), which provides further example of Nishimatsu's poor corporate governance and management. The negative impact on the company's operating performance in fiscal 2008 (ending March 31, 2009) and fiscal 2009 (ending March 31, 2010) is likely to increase amid mounting concern over the prospects for order receipts and collection of receivables due to the deteriorating business environment. Nishimatsu's sales are likely to fall below levels forecast by the company due to a decrease in investment in public works and a drop in orders received, both of which are attributable to the global economic downturn. In addition, the company's expenses are growing as a result of an increase in loan-loss reserves accrued by the credit deterioration of the company's clients. Nishimatsu has maintained a strong financial profile relative to its ratings, which has supported its credit quality. However, the risk of the company's financial profile becoming weaker is increasing due to downward pressure on the company's profitability and cash flow generating ability. Standard & Poor's expects to resolve the CreditWatch status of the rating following further review of the impact of the alleged violations on the performance, funding stability, and financial base of the company. This unsolicited rating(s) was initiated by Standard & Poor's. It may be based solely on publicly available information and may or may not involve the participation of the issuer's management. Standard & Poor's has used information from sources believed to be reliable, but does not guarantee the accuracy, adequacy, or completeness of any information used. PIONEER CORPORATION: Moody's Downgrades Issuer Rating to 'Ba3' -------------------------------------------------------------- Moody's Investors Service has downgraded Pioneer Corporation's local currency issuer rating to Ba3 from Ba1. At the same time, Moody's continues its review for a further possible downgrade. The rating action has been prompted by the rapid deterioration in Pioneer's profitability and financial flexibility under the severe conditions surrounding the consumer electronics markets. The global financial crisis has caused a rapid and significant slowdown in demand for Pioneer's major products, such as car audio and navigation systems, and flat panel display TVs. As a result, the company's sales and operating profit have dropped significantly. On February 12, for FYE03/2009, Pioneer revised the forecast for its sales to JPY560 billion from JPY700 billion and lowered its projection for operating profit to negative JPY69 billion from negative JPY17 billion. The company also expects to incur a net loss of JPY130 billion. Pioneer plans to implement additional restructuring measures, including a withdrawal from the FPD TV business as well as the consolidation of the production facilities in its car electronics business. These measures may mitigate its downside risk; however, Moody's is concerned that the company may continue to face great challenges to restore the profitability of its car electronics business in a timely manner. At the same time, Pioneer's balance sheet will be significantly damaged by the net loss and negative free cash flow projected for FYE03/2009. Pioneer's balance sheet could be further damaged by operating and restructuring losses in FYE03/2010 in Moody's opinion. Moody's believes that one of the key rating factors will be strong and continuous financial support from major lenders. In its review, Moody's will focus on Pioneer's restructuring strategy for improving its competitiveness and profitability. Moody's will also evaluate the company's financial strategy to improve its balance sheet position. The last rating action for Pioneer was on January 29, 2009, when Moody's downgraded the company's issuer rating to Ba1 from Baa2 and kept it on review for a possible downgrade. Pioneer Corporation, headquartered in Tokyo, is a leading manufacturer of car electronics and home electronics products. PIONEER CORPORATION: S&P Downgrades Corp. Credit Rating to 'BB-' ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered to 'BB-' from 'BB+' its long-term corporate credit and senior unsecured ratings on Pioneer Corp. due to rapid capital erosion experienced by the company in fiscal 2008 (ending March 31, 2009). The ratings action also reflects the risk of further deterioration in the company's financial profile due to expected net losses through fiscal 2009, related to the cost burden of structural reform. At the same time, Standard & Poor's placed the long-term corporate credit and senior unsecured debt ratings on the company on CreditWatch with negative implications. On Feb. 12, 2009, Pioneer announced a material downward revision of its profit forecast for fiscal 2008 as a direct result of the global economic slump and appreciation of the yen. In the current fiscal year, the company's flat panel TV segment has been under strong downward pressure, while its core Car Electronics segment is likely to become unprofitable due to a rapid decrease in automobile sales. Consequently, net losses for fiscal 2008 are likely to increase to JPY130 billion from the previous forecast of JPY78 billion. To address the rapid deterioration in profitability, the company intends to stabilize its earnings base by implementing structural reform measures, which include: -- A full withdrawal from the flat panel TV business; -- Large-scale labor cuts, which will see a reduction of 6,000 permanent employees globally; and -- Improvements in financial profile through reduced investments and asset sales. Pioneer's net assets may decrease to about JPY100 billion as of March 31, 2009, from JPY247.4 billion as of March 31, 2008, due to a material net loss. Moreover, Standard & Poor's believes that Pioneer's financial soundness may further deteriorate in fiscal 2009 (ending March 31, 2010). This judgment is based on the increased likelihood that the company's core business will continue to face a challenging operating environment, as well as the extra costs that structural reform will incur. In addition, there are growing uncertainties over the company's financing plans in and after fiscal 2009. Standard & Poor's will resolve the CreditWatch placement after examining prospects for a recovery in the company's profitability and financial profile, with a focus on the medium-term management plan, which is to be released by Pioneer shortly. Standard & Poor's is of the opinion that the current ratings on the company will not be maintained at the current level unless its plan includes measures designed to improve its financial standings. The ratings on the company may also be lowered if S&P anticipate a continued slump in the company's profitability and further deterioration in its financial profile in fiscal 2009, due to a harsher and more prolonged deterioration of the business environment or a delay in the implementation of structural reform. Standard & Poor's will also focus on support given to the company by financial institutions. Ratings List Downgraded; CreditWatch/Outlook Action; Ratings Affirmed Pioneer Corp. Corporate Credit Rating To From -- ---- Foreign Currency BB-/Watch Neg/NR BB+/Negative/NR Local Currency BB-/Watch Neg/-- BB+/Negative/-- Senior Unsecured (1 issue) BB-/Watch Neg BB+ * JAPAN: Unsold Condominiums in Tokyo Dropped Last Month -------------------------------------------------------- Bloomberg News reports that data from the Real Estate Economic Research Institute showed the number of unsold condominiums in Tokyo and surrounding areas fell in January from a 24-year high. According to the report, unsold inventory fell 6 percent to 11,679 units last month from 12,427 units in December, representing a 9.2 percent increase versus a year earlier. The report relates developers added 1,760 new units to the market, 24 percent fewer than in January last year, to clear inventory. "Companies are concentrating on selling existing stock rather than new apartments," Bloomberg News quoted Akio Fukuda, a manager at the institute, as saying during a press conference in Tokyo yesterday. * S&P Put Junk Ratings on Nine Tranches on Negative CreditWatch --------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on 27 tranches relating to 22 Japanese synthetic CDO transactions on CreditWatch with negative implications. At the same time, Standard & Poor's affirmed the ratings on three other tranches relating to two other Japanese synthetic CDO transactions and removed them from CreditWatch with negative implications. Standard & Poor's also affirmed the ratings on another two tranches relating to two other transactions and removed them from CreditWatch with positive implications (also listed below). The 27 tranches that have been placed on CreditWatch with negative implications had SROC (synthetic rated overcollateralization) levels that fell below 100% during S&P's monthly run on Jan. 31. The ratings on the other three tranches have been affirmed and removed from CreditWatch with negative implications because their SROC levels have recovered to 100% or above during S&P's monthly run on Jan. 31. The tranches listed below that have been placed on CreditWatch, along with any other tranches with ratings that are currently on CreditWatch with negative or positive implications, will be taken to committee in the middle of this month. Related Research CDO Spotlight: Synthetic ROC and the Surveillance of Synthetic CDOs Refinements To Standard & Poor's Synthetic CDOs CreditWatch And Upgrade Policy Ratings List Astra Alpha Ltd. Multi-issuer obligation programme series 2005-01 credit-linked notes To From Issue Amount -- ---- ------------ CCC- CCC-/Watch Pos JPY15.0 bil. Corsair (Jersey) No. 2 Ltd. Floating-rate secured portfolio credit-linked notes series 76 To From Issue Amount -- ---- ------------ B-/Watch Neg B- $20.0 mil. Floating rate secured portfolio credit-linked notes series 86 To From Issue Amount -- ---- ------------ CCC/Watch Neg CCC $10.0 mil. Eirles Two Ltd. L1 credit linked secured loan 2004-4 To From Issue Amount -- ---- ------------ AAA/Watch Neg AAA JPY4.0 bil. Portfolio credit linked secured notes series 310 Class To From Issue Amount ----- -- ---- ------------ B BB-/Watch Neg BB- JPY1.0 bil. Ethical CDO I (Jersey No. 1) Ltd. Floating-rate extendible maturity secured portfolio credit-linked notes series 2 To From Issue Amount -- ---- ------------ CCC+/Watch Neg CCC+ A$50.0 mil. Helium Capital Ltd. Asset backed securities and collateralized debt obligation limited credit linked notes series 51 To From Issue Amount -- ---- ------------ CCC+ CCC+/Watch Pos JPY1.0 bil. Corporate basket credit-linked note series 60 (Esperance) To From Issue Amount -- ---- ------------ B-/Watch Neg B- A$85.0 mil. Limited recourse secured floating rate credit-linked notes series 65 To From Issue Amount -- ---- ------------ CCC+/Watch Neg CCC+ JPY2.0 bil. Momentum CDO (Europe) Ltd. Secured credit-linked notes (Louvre CDO) series 2005-1 Class To From Issue Amount ----- -- ---- ------------ BF B/Watch Neg B JPY1.0 bil. BX B/Watch Neg B JPY200.0 mil. SONATA floating rate notes series 2006-11 To From Issue Amount -- ---- ------------ BBB-/Watch Neg BBB- $6.0mil. SONATA 5 floating rate notes series 2006-22 To From Issue Amount -- ---- ------------ CCC+/Watch Neg CCC+ $10.0 mil. Omega Capital Investments PLC Series 10 secured floating rate notes Class To From Issue Amount ----- -- ---- ------------ A BB+ BB+/Watch Neg JPY2.0 bil. B BB+ BB+/Watch Neg JPY3.1 bil. Secured multi rate notes series 32 Class To From Issue Amount ----- -- ---- ------------ A1 B-/Watch Neg B- JPY500.0 mil. A2 B-/Watch Neg B- JPY300.0 mil. Orpheus II Ltd. Secured credit link notes Class To From Issue Amount ----- -- ---- ------------ AF BB+/Watch Neg BB+ JPY1.1 bil. AX BB+/Watch Neg BB+ JPY1.2 bil. Signum Vanguard Ltd. Class A secured floating rate credit-linked notes series 2005-06 To From Issue Amount -- ---- ------------ BBBpNRi BBBpNRi/Watch Neg JPY3.0 bil. Secured floating rate credit-linked notes 2006-01 To From Issue Amount -- ---- ------------ BBB-/Watch Neg BBB- JPY2.0 bil. Secured floating rate credit-linked notes series 2006-02 To From Issue Amount -- ---- ------------ B/Watch Neg B JPY2.0 bil. Series 2006-05 secured floating rate credit-linked notes To From Issue Amount -- ---- ------------ BB/Watch Neg BB JPY600.0 mil. Secured floating rate credit-linked notes series 2006-10 To From Issue Amount -- ---- ------------ B/Watch Neg B JPY300.0 mil. Secured floating rate credit-linked notes series 2006-11 To From Issue Amount -- ---- ------------ CCC+/Watch Neg CCC+ JPY2.0 bil. Series 2007-01 secured floating rate credit-linked notes To From Issue Amount -- ---- ------------ CCC/Watch Neg CCC JPY500.0 mil. Series 2007-02 secured fixed rate credit-linked notes To From Issue Amount -- ---- ------------ CCC/Watch Neg CCC JPY1.0 bil. Silk Road Plus PLC Limited recourse secured fixed-rate credit-linked notes series 3 class C2-J To From Issue Amount -- ---- ------------ BBB-/Watch Neg BBB- JPY2.0 bil. Limited recourse secured floating-rate credit-linked notes series 5 class C1-J To From Issue Amount -- ---- ------------ BBB-/Watch Neg BBB- JPY1.0 bil. Skylark Ltd. Secured credit-linked notes series 2004-2 (Aska) Class To From Issue Amount ----- -- ---- ------------ B AAA/Watch Neg AAA JPY3.0 bil. C AAA/Watch Neg AAA JPY1.5 bil. D AA+/Watch Neg AA+ JPY1.5 bil. ==================== N E W Z E A L A N D ==================== AGILITY GROUP: Sells Business to Recruit IT ------------------------------------------- Recruit IT is set to acquire Agility Group and Agility Group Wellington and is completing due diligence on recruitment firms, David Watson at Computerworld New Zealand reports. According to the report, Recruit IT director John Wyatt said the terms of sale have been agreed and a contract has been signed "for the bulk of Agility's business." Computerworld quoted Mr. Wyatt as saying "It is Recruit IT's intention that existing contracts will immediately transfer to Recruit IT, but on agreed contractor/client and Recruit IT terms, which will offer added protection for the contractors." "The majority of contractors and clients we have spoken with are in agreement with what we have proposed," Mr. Wyatt says. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 30, 2009, the National Business Review said Agility Group and Agility Group (Wellington) have gone into receivership. Agility Group -- http://www.agilitygroup.co.nz/-- is an IT recruitment firm based in Auckland, New Zealand. ALL ABOUT ET AL: Appoint Shephard and Dunphy as Liquidators ----------------------------------------------------------- On December 16, 2008, Iain Bruce Shephard and Christine Margaret Dunphy were appointed jointly and severally as liquidators of: -- LPB Porirua Limited; and -- All About I.T Limited. The Liquidators can be reached at: Iain Bruce Shephard Christine Margaret Dunphy Shephard Dunphy Limited Zephyr House, Level 2 82 Willis Street, Wellington Facsimile: (04) 473 6748 D & F CONTRACTING: Court Hears Wind-Up Petition ----------------------------------------------- On January 28, 2009, the High Court at Auckland heard a petition to have D & F Contracting Ltd.'s operations wound up. Hynds Pipe Systems Limited filed the petition against the company on August 22, 2008. LUKE MITCHELL: Court Hears Wind-Up Petition ------------------------------------------- On January 22, 2009, the High Court at Auckland heard a petition to have Luke Mitchell Consulting Ltd.'s operations wound up. Acrow Limited filed the petition against the company on Nov. 6, 2008. MAFIA COFFEE: Placed Under Voluntary Liquidation ------------------------------------------------ On December 15, 2008, the shareholders of Mafia Coffee Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by January 23, 2009, will be included in the company's dividend distribution. The company's liquidators are: Stephen Mark Lawrence Anthony John McCullagh PKF Corporate Recovery & Insolvency (Auckland) Limited PO Box 3678, Auckland 1140 Telephone: (09) 306 7425 Facsimile: (09) 302 0536 NORTH 2 SOUTH ET AL: Appoint Madsen-Ries & Jordan as Liquidators ---------------------------------------------------------------- On December 17, 2008, Vivien Judith Madsen-Ries and Barry Phillip Jordan were appointed as liquidators of: -- North 2 South Relocations Limited; and -- First Class Plastering Limited. The Liquidators can be reached at: Vivien Judith Madsen-Ries Barry Phillip Jordan Deloitte Level 8, Deloitte House 8 Nelson Street, Auckland 1010 Telephone: (09) 309 4944 Facsimile: (09) 309 4947 OPI PACIFIC: Commences Liquidation Proceedings ---------------------------------------------- Opi Pacific Holdings Ltd. commenced liquidation proceedings on December 15, 2008. Only creditors who were able to file their proofs of debt by January 30, 2009, will be included in the company's dividend distribution. The company's liquidators are: Andrew John McKay John Joseph Cregten c/o Aaron Walsh AMP Centre, Level 15 29 Customs Street West PO Box 532, Auckland Telephone: (09) 354 8243 Facsimile: (09) 358 3646 ROBERT MONG: Commences Liquidation Proceedings ---------------------------------------------- Robert Mong Holdings Ltd. commenced liquidation proceedings on December 5, 2008. The company's liquidator is: Brian William Busing Busing Russell, Chartered Accountants 369 Devon Street, New Plymouth Telephone: (06) 758 5273 SHOTTA LTD: Appoints Shephard and Dunphy as Liquidators ------------------------------------------------------- On December 16, 2008, Iain Bruce Shephard and Christine Margaret Dunphy were appointed as liquidators of Shotta Ltd. Only creditors who were able to file their proofs of debt by February 13, 2009, will be included in the company's dividend distribution. The company's liquidators are: Iain Bruce Shephard Christine Margaret Dunphy Shephard Dunphy Limited Zephyr House, Level 2 82 Willis Street, Wellington Facsimile: (04) 473 6748 STARTING OVER: Creditors' Proofs of Deebt Due on May 11 ------------------------------------------------------- The creditors of Starting Over Ltd. are required to file their proofs of debt by May 11, 2009, to be included in the company's dividend distribution. The liquidation commenced on December 22, 2008. The company's liquidators are: John Robert Buchanan Callum James Macdonald Buchanan Macdonald Limited Chartered Accountants PO Box 101993, North Shore Mail Centre North Shore City 0745 Telephone: (09) 441 4165 Facsimile: (09) 441 4167 ULTRA HOMES: Commences Liquidation Proceedings ---------------------------------------------- Ultra Homes Ltd. commenced liquidation proceedings on Dec. 11, 2008. The company's liquidator is: Lincoln Sharp PO Box 324, Pukekohe 2340 Telephone: (09) 238 9219 Facsimile: (09) 238 6826 WILLIAMS AND ADAMS: Liquidator Downsizes Firm; 20 Jobs Affected --------------------------------------------------------------- The National Business Review reports that the liquidators of Williams and Adams have closed two sites and laid off 20 employees to make the company more attractive to sell. The company, the report relates, had employed 115 staff over 10 sites before it was placed in liquidation. "The downsized company is hopefully going to be more attractive to potential purchasers, which will enable us to sell it as a going concern, which is what our strategy is," said John Fisk of liquidiator PricewaterhouseCoopers. According to the report, advertising would begin next week for a sale, which was expected to take about six weeks. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 6, 2009, the National Business Review said Williams and Adams, Wellington's largest and long-established car dealership, has gone into liquidation. According to the Business Review, John Fisk of PricewaterhouseCoopers said the business failed due to declining sales amid economic downturn. Williams and Adams -- http://www.williamsandadams.co.nz/-- is a 4th Generation Wellington family owned and operated motor vehicle group that has supplied the greater Wellington region for more than 80 years. It employs 115 staff and has 10 sites. ===================== P H I L I P P I N E S ===================== LEGACY GROUP: To File for Insolvency Next Week ---------------------------------------------- The Legacy group will be filing a petition for insolvency at the Makati Regional Trial Court next week to pay all investors and creditors of its "double-your-money" scheme, ABS CBN News reports citing owner Celso de los Angeles. Mr. de los Angeles, as cited by the report, said the move will allow the scheme's 14,000 investors to be equitably paid back by the company. The Group's rural bank depositors, ABS CBN relates, will be paid by the Philippine Deposit Insurance Corp., while pre-need plan holders can get paid through the Group's trust funds. "Instead of clients fighting over the company's assets, it would be better to surrender all of our assets to court. We have to file the necessary court proceedings no later than next week to protect all investors and individuals," the report quoted Mr. de los Angeles as saying at the weekly media forum "Kapihan sa Sulo." According to the report, Legacy group legal consultant Atty. Francisco Rivera said the court will be appointing a receiver who will handle all of the company's assets and properties, and discuss among creditors on the next course of action. Atty. Rivera also said the court will set a schedule for a hearing where clients can file their claims, ABS CBN relates. House Probe As reported in the Troubled Company Reporter-Asia Pacific on Jan. 27, 2009, the Philippine Daily Inquirer said the House of Representatives wants Mr. delos Angeles, the man allegedly behind the Legacy financial scam, to personally explain the collapse of his rural banks and pre-need insurance company. "We have to hear from Mr. Delos Angeles, the Bangko Sentral [Central Bank] and all other stakeholders in the banking sector so that we can have a clear picture on what really caused the closure of our rural banks," the Inquirer quoted House Speaker Prospero Nograles as saying. But Mr. Nograles, as cited by the Inquirer, said the House was not singling out the Legacy group, considering that 400 rural banks had declared bankruptcy. The Inquirer disclosed that the Legacy Group allegedly amassed between PHP15 billion and PHP25 billion in deposits over the last three years due to an aggressive marketing scheme, which promised depositors 20 percent in annual returns. To address risk concerns, the Inquirer stated, the cash deposits are spread out through the Legacy chain of banks to keep each deposit within the maximum limit of the PDIC. According to the Inquirer, Mr. Delos Angeles is the owner of 13 banks with 29 branches nationwide under the Legacy banner. In 2008, the Inquirer recalled, the BSP shuttered the Rural Bank of Para�aque; Rural Bank of Bais (in Negros Oriental province); Pilipino Rural Bank (in Cebu); Rural Bank of San Jose (in Batangas); Philippine Countryside Bank (in Cebu); Dynamic Bank (Rural Bank of Calatagan, in Batangas); San Pablo City Development Bank; Nation Bank (in Bacolod City) and the Bank of East Asia (in Cebu) due to insolvency. About Legacy Group Headquartered in Quezon City, Philippines, The Legacy Group -- http://www.legacy.com.ph/thelegacy.html-- is a conglomerate of banks and pre-need companies. The banks offer various financial products and pre-need firms have pension, education and memorial plans. Other members of The Group are companies that provide credit cards, micro-lending and automotive financing services. ====================== S O U T H A F R I C A ====================== GATEWAY TELECOMMUNICATIONS: S&P Withdraws 'B-' Corporate Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that it withdrew its long- term 'B-' corporate credit rating on South Africa-based emerging markets telecommunications services provider Gateway Telecommunications S.A. (Proprietary) Ltd. at the company's request. At the time of the withdrawal, the rating was on CreditWatch, where it had been placed with positive implications on Aug. 29, 2008. Gateway disposed of its telecom business in December 2008 and used part of the proceeds to repay rated debt of $132.5 million issued by Gateway Telecommunications PLC. The debt rating was withdrawn on Feb. 4, 2009. Standard & Poor's did not conduct a review of the business and financial risk profiles of the remaining broadcasting business and therefore did not resolve the CreditWatch placement before the withdrawal of the long-term corporate credit rating. Ratings List Rating Withdrawn Gateway Telecommunications S.A. (Proprietary) Ltd. To From -- ---- N.R. B-/Watch Pos/-- N.R. -- Not rated. HERNIC FERROCHROME: To Keep Plants Closed if Prices Slide Further ----------------------------------------------------------------- Bloomberg News reports Hernic Ferrochrome (Pty) Ltd will keep its plants closed in the second quarter if the stainless-steel raw material's price drops further. Contract prices for ferrochrome fell 57 percent to 79 U.S. cents a pound for the first quarter and may slide another 5 cents in the second quarter, the report says citing a company official. Hernic, which shut the last of its four furnaces in January, may be forced to cut jobs, Jasper Pieters, operations director at the company, told Bloomberg News in an interview. Hernic has 550 permanent employees and 2,000 contract workers, according to the report. Based in Brits, South Africa, Hernic Ferrochrome (Pty) -- http://www.hernic.co.za/about.php/-- is a ferrochrome supplier. HFSA Bv (Mitsubishi) holds a 51% stake in the company. =============== T H A I L A N D =============== BANK OF AYUDHYA: To Acquire AIG Thailand Units for THB2.055 Bln --------------------------------------------------------------- Bank of Ayudhya Public Company Limited (BAY) and American International Group Inc. (AIG) disclosed an agreement under which BAY will acquire AIG Retail Bank Public Company Limited and AIG Card (Thailand) Company Limited. The transaction, subject to the approval of the Bank of Thailand and BAY's shareholders, is expected to be completed in April 2009. Under the terms of the agreement, BAY will acquire 99.5 percent of the shares of AIG Retail Bank and 100 percent of AIG Card (Thailand) for a total consideration of THB2.055 billion or US$58.7 million (subject to closing valuation adjustment). In addition, inter-company loans totaling US$477 million from AIG will be repaid at closing. The combined assets of the two companies are expected to increase BAY's assets by approximately THB32 billion, which brings its current assets from approximately THB745 billion to THB777 billion. The transaction will increase BAY's retail loans by 14 percent and approximately 220,000 credit cards in force. Mr. Tan Kong Khoon, President and Chief Executive Officer, Bank of Ayudhya PCL, said, "We are pleased with this opportunity. The acquisition of AIG Retail Bank and AIG Card Thailand emphasizes Bank of Ayudhya's strategy in its inorganic growth plan. It is another step forward in accelerating the Bank's consumer banking business after the GECAL acquisition in 2008. The transaction will add 14 percent to our retail portfolio bringing BAY's retail loan portion to 36 percent. This acquisition will strengthen our leading position in Thailand's banking sector. At the same time, customers of AIG Retail Bank and AIG Card will benefit from an easy access to one-stop financial services and a wide range of consumer financial solutions offered by BAY." AIG Retail Bank President and CEO Charly Madan said, "AIG Retail Bank is an institution of the highest quality. We believe this outcome serves the best interests of both companies, as well as our valued customers, who we are confident will benefit from Bank of Ayudhya's financial strength, comprehensive distribution network and extended product lines. We are committed to continue providing excellent service to our customers during the transition period and we are thankful for their confidence and support." Blackstone Advisory Services provided financial advice to AIG in connection with AIG's global restructuring program. Deutsche Bank acted as financial advisor and Linklaters served as legal counsel to AIG on this transaction. Phatra Securities acted as financial advisor and Allen & Overy (Thailand) served as legal counsel to Bank of Ayudhya on this transaction. About AIG Based in New York, American International Group Inc. (AIG) is the leading international insurance organization with operation in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. About Bank of Ayudhya Headquartered in Bangkok, Thailand, Bank of Ayudhya Public Co. Ltd. -- http://www.krungsri.com/-- provides a full range of banking and financial services. It is Thailand's fifth largest bank by assets and deposits. As of Dec. 31, 2007, it had total assets of THB651 billion. The bank offers corporate and personal lending, retail and wholesale banking; international trade financing asset management; and investment banking services to customers through its branches. It has branches in Hong Kong, Vietnam, Laos, and the Cayman Islands. As reported in the Troubled Company Reporter-Asia Pacific on April 14, 2008, Moody's Investors Service upgraded the Bank of Ayudhya Public Co. Ltd.'s bank financial strength rating to D from D-. At the same time, the bank's deposit and debt ratings have been upgraded to Baa2/Prime-2 from Baa3/Prime-3. The outlook for all ratings is stable. This rating action concludes Moody's review of BAY's BFSR for possible upgrade as announced Dec. 11, 2007. Bank of Ayudhya's subordinated debts carry Fitch Ratings Services' BB+ rating, effective September 2007. =============== X X X X X X X X =============== * S&P Puts Junk Ratings on 15 Asia-Pacific CDOs on WatchNeg. ------------------------------------------------------------ Standard & Poor's Ratings Services placed 35 ratings on 32 Asia- Pacific (excluding Japan) synthetic collateralized debt obligations (CDOs) on CreditWatch with negative implications. At the same time, eight ratings on six other CDOs were affirmed and removed from CreditWatch. The rating actions reflect the credit risk of the CDO portfolios and probability of default in the transactions. In the end-of- month analysis for January 2009, the synthetic rated overcollateralization levels for the ratings placed on CreditWatch with negative implications fell below 100% at the current rating level. For the ratings that were affirmed and removed from CreditWatch with positive or negative implications, the SROC passed 100% at the current rating level. The Global SROC Report with the SROC analysis as of end-January 2009 will be published shortly. In the week following the publication of the report, a full review of the ratings on Asia- Pacific synthetic CDOs placed on CreditWatch with positive or negative implications will be performed and appropriate rating actions, if any, will be taken. The Global SROC Report provides SROC and other performance metrics on more than 3,000 individual CDO tranches. Related Research This article is based in part on these criteria articles: -- CDO Spotlight: Synthetic ROC and the Surveillance of Synthetic CDOs, published on March 15, 2004 -- Refinements To Standard & Poor's Synthetic CDOs CreditWatch And Upgrade Policy, published on Sept. 15, 2006 The rating actions taken on the affected transactions are: Deal Name Rating To Rating From --------- --------- ----------- Alpha Financial Products Ltd. Series 1 B+pNRi B+pNRi/Watch Pos ARLO IX Ltd. 2007 (Pascal SCO A-1) BBB-/Watch Neg BBB- ARLO Ltd. Series 2006 (SKL CDO Series 11) BBBpNRi/Watch Neg BBBpNRi Athenee CDO PLC Series 2007-11 A+/Watch Neg A+ Athenee CDO PLC Series 2007-2 A+/Watch Neg A+ Athenee CDO PLC Series 2007-3 A+/Watch Neg A+ Athenee CDO PLC Series 2007-8 A+/Watch Neg A+ Athenee CDO PLC Series 2007-9 A+/Watch Neg A+ Castlereagh Trust - Series 1 CCC/Watch Neg CCC Castlereagh Trust - Series 2 CCC-/Watch Neg CCC- Corsair (Cayman Islands) No. 4 Ltd. Series 5 CCC/Watch Neg CCC Corsair (Jersey) No. 2 Ltd. Series 68 BB/Watch Neg BB Corsair (Jersey) No. 2 Ltd. Series 88 CCC-/Watch Neg CCC- Corsair (Jersey) No. 2 Ltd. Series 89 CCC+/Watch Neg CCC+ Corsair (Jersey) No. 2 Ltd. Series 90 CCC-/Watch Neg CCC- Corsair (Jersey) No. 2 Ltd. Series 91 CCC+/Watch Neg CCC+ BNP Paribas Portfolio Management and BNP Paribas (London Branch) Dragon A (CDS BNP) A-srp/Watch Neg A-srp Echo Funding Pty Ltd. Series 16 B B/Watch Neg Echo Funding Pty Ltd. Series 21 BB+/Watch Neg BB+ Eirles Two Ltd. Series 241 BB/Watch Neg BB Magnolia Finance I PLC Series 2006-21 BB+/Watch Neg BB+ Magnolia Finance I PLC Series 2006-22 BB+/Watch Neg BB+ Morgan Stanley ACES SPC Series 2007-9 Class III (Interest) B-i/Watch Neg B-i Morgan Stanley ACES SPC Series 2007-9 Class III (Principal) BBp/Watch Neg BBp Morgan Stanley Managed ACES SPC Series 2006-12 Class IIA CCC+/Watch Neg CCC+ Morgan Stanley Managed ACES SPC Series 2006-12 Class IIIA CCC/Watch Neg CCC Morgan Stanley Managed ACES SPC Series 2006-7 Class IA B+/Watch Neg B+ Morgan Stanley Managed ACES SPC Series 2006-7 Class IIA CCC+/Watch Neg CCC+ Obelisk Trust 2006-1 Eden CCC+/Watch Neg CCC+ Queenstown CDO Ltd. Series 2007-3 CCC-/Watch Neg CCC- Rembrandt Australia Trust 2004-2 AA/Watch Neg AA Resonance Funding Pty Ltd. Series 2006-1 Class D AA AA/Watch Neg Resonance Funding Pty Ltd. Series 2006-1 Class E BBB+ BBB+/Watch Neg Resonance Funding Pty Ltd. Series 2006-1 Class G B+ B+/Watch Neg Salisbury International Investments Ltd. Series 2006-18 CCC/Watch Neg CCC SELECT ACCESS Investments Ltd. Series 2004-5 AA+/Watch Neg AA+ SELECT ACCESS Investments Ltd. Series 2005-2 BB+/Watch Neg BB+ Signum Platinum II Ltd. Series 2006-1 CCC- CCC-/Watch Pos STARTS (Cayman) Limited Series 2007-35 B/Watch Neg B STARTS (Cayman) Ltd. Series 2005-5 CCC-/Watch Neg CCC- XELO PLC Series 2006 (Spinnaker III Asia Mezz) Tranche B B/Watch Neg B Xelo PLC Series 2007 (Spinnaker III Asia Mezzanine 3) B B/Watch Neg Zenesis SPC Series 2006-1 BBB+ BBB+/Watch Pos NRi � Interest is not rated. srp�swap risk rating. P � rating on principal. * BOND PRICING: For the Week February 16 to February 20, 2009 -------------------------------------------------------------- AUSTRALIA --------- A&R Whitcoulls 9.500% 12/15/10 NZD 29.83 Ainsworth Game 8.000% 12/31/09 AUD 0.62 Aust & NZ Bank 6.540% 06/29/49 GBP 53.07 Allco Hit Ltd 9.000% 08/17/09 AUD 10.00 Alumina Finance 2.000% 05/16/13 USD 62.25 Antares Energy 10.000% 10/31/13 AUD 1.15 Babcock & Brown Pty 8.500% 11/17/09 NZD 4.50 Becton Property Group 9.500% 06/30/10 AUD 0.21 Bemax Resources 9.375% 07/15/14 USD 37.63 Bemax Resources 9.375% 07/15/14 USD 37.63 Bounty Industries Ltd 10.000% 06/30/10 AUD 0.02 Capral Aluminum 10.000% 03/29/12 AUD 45.00 China Century 12.000% 09/30/10 AUD 0.88 CSR Finance Ltd 7.700% 07/21/25 USD 24.63 Djerriwarrh Inv 6.500% 09/30/09 AUD 3.96 FMG Finance 9.750% 09/01/13 EUR 54.38 FMG Finance 9.750% 09/01/13 EUR 54.38 FMG Finance 10.000% 09/01/13 USD 56.00 FMG Finance 10.000% 09/01/13 USD 56.00 FMG Finance 10.625% 09/01/16 USD 65.00 FMG Finance 10.625% 09/01/16 USD 65.00 GE Cap Australia 6.000% 03/15/19 AUD 69.49 Griffin Coal Min 9.500% 12/01/16 USD 35.50 Griffin Coal Min 9.500% 12/01/16 USD 35.50 Hanson Australia 5.250% 03/15/13 USD 40.25 Heemskirk Consol 8.000% 04/29/11 AUD 2.15 Insurance Austra 5.625% 12/21/26 GBP 72.97 Jpm Au Enf Nom 1 3.500% 06/30/10 USD 1.12 Macquarie Bank 5.500% 09/19/16 GBP 70.27 Macquarie Bank 6.500% 05/31/17 AUD 45.64 Metal Storm 10.000% 09/01/09 AUD 0.82 Minerals Corp 10.500% 03/31/09 AUD 0.90 Myer Group Fin 10.194 03/15/13 AUD 62.00 Nylex Ltd. 10.000% 12/08/09 AUD 0.95 Paladin Energy 4.500% 12/15/11 USD 69.29 Paladin Energy 5.000% 03/11/13 USD 61.37 Resolute Mining 12.000% 12/31/12 AUD 0.53 Rio Tinto Financ 7.125% 07/15/28 USD 73.16 Suncorp-Metway 6.500% 06/22/16 AUD 70.77 Suncorp Insuran 6.250% 06/13/27 AUD CHINA ----- China Govt Bond 4.860% 08/10/14 CNY 0.00 Chinatrust Comm 5.625% 03/29/49 CNY 57.50 Jiangxi Copper 1.000% 09/22/16 CNY 72.47 HONG KONG --------- City Tele-Tender 8.750% 02/01/15 USD 64.17 Resparcs Funding 8.000% 12/29/49 USD 20.50 INDIA ----- Amtek Auto 0.500% 06/03/10 USD 65.03 Bank of Baroda 6.625% 05/25/22 USD 70.00 Canara Bank 6.365% 11/28/21 USD 70.32 Gitanjali Gems 1.000% 11/25/11 USD 69.00 Hindustan Cons 10.000% 10/25/09 INR 33.35 ICICI Bank Ltd 6.375% 04/30/22 USD 58.25 ICICI Bank Ltd 7.250% 08/29/49 USD 45.05 State BK India 6.439% 02/28/49 USD 72.18 UTI Bank Ltd 7.250% 05/16/13 USD 64.91 INDONESIA --------- Bank Lippo TB PT 7.375% 11/22/16 USD 63.75 Indonesia (Rep) 8.500% 10/12/35 USD 74.00 Indonesia (Rep) 6.625% 02/17/37 USD 64.50 Indonesia (Rep) 6.625% 02/17/37 USD 67.70 Indonesia (Rep) 7.750% 01/17/38 USD 71.49 Indonesia (Rep) 7.750% 01/17/38 USD 67.50 JAPAN ----- Aiful Corp 5.000% 08/10/10 USD 73.79 Aiful Corp 5.000% 08/10/10 USD 73.79 Aiful Corp 6.000% 08/10/10 USD 73.79 Aiful Corp 6.000% 12/12/11 USD 59.65 Aozora Bank 0.560% 06/12/12 JPY 74.78 Aozora Bank 0.560% 06/27/12 JPY 74.50 Aozora Bank 0.660% 07/12/12 JPY 74.51 Aozora Bank 0.660% 07/27/12 JPY 74.23 Aozora Bank 0.660% 08/12/12 JPY 73.97 Aozora Bank 0.660% 08/27/12 JPY 73.66 Aozora Bank 1.700% 08/27/12 JPY 74.57 Aozora Bank 0.660% 09/12/12 JPY 73.37 Aozora Bank 0.660% 09/27/12 JPY 73.09 Aozora Bank 1.400% 09/27/12 JPY 73.14 Aozora Bank 1.660% 10/12/12 JPY 72.82 Aozora Bank 1.600% 10/26/12 JPY 73.24 Aozora Bank 1.660% 10/27/12 JPY 72.57 Aozora Bank 1.660% 11/12/12 JPY 72.26 Aozora Bank 1.660% 11/27/12 JPY 71.99 Aozora Bank 1.350% 11/27/12 JPY 71.93 Aozora Bank 1.660% 12/12/12 JPY 71.72 Aozora Bank 0.660% 12/27/12 JPY 71.45 Aozora Bank 1.450% 12/27/12 JPY 71.72 Aozora Bank 0.660% 01/12/13 JPY 71.18 Aozora Bank 1.250% 01/25/13 JPY 70.59 Aozora Bank 0.660% 01/27/13 JPY 70.94 Aozora Bank 0.560% 02/12/13 JPY 70.29 Aozora Bank 0.560% 02/27/13 JPY 70.02 Aozora Bank 1.300% 02/27/13 JPY 70.22 Aozora Bank 0.560% 03/12/13 JPY 69.81 Aozora Bank 0.560% 03/27/13 JPY 69.55 Aozora Bank 1.250% 03/27/13 JPY 69.57 Aozora Bank 0.560% 04/12/13 JPY 69.27 Aozora Bank 1.300% 04/26/13 JPY 69.21 Aozora Bank 0.560% 04/27/13 JPY 69.04 Aozora Bank 0.560% 05/12/13 JPY 68.80 Aozora Bank 0.560% 05/27/13 JPY 68.51 Aozora Bank 1.600% 05/27/13 JPY 69.69 Aozora Bank 0.560% 06/12/13 JPY 68.24 Aozora Bank 0.660% 12/27/12 JPY 71.45 Belluna Co Ltd 1.100% 03/21/12 JPY 59.50 Chuo Mitsui Trst 5.506% 12/29/49 USD 59.88 CSK Corporation 0.250% 09/30/13 JPY 47.95 Ebara Corp 1.700% 09/30/11 JPY 71.50 Ebara Corp 1.300% 09/30/13 JPY 63.17 Hiroshima Bank 1.720% 05/14/14 JPY 70.44 Hiroshima Bank 1.890% 09/20/17 JPY 58.65 Hitachi Zosen 1.500% 09/30/12 JPY 69.50 Kenedix Inc 2.090% 11/09/10 JPY 57.73 Nichiei Co Ltd 1.750% 03/31/14 JPY 62.00 Pacific Manageme 2.800% 03/16/11 JPY 20.05 Pacific Manageme 2.940% 03/15/12 JPY 20.04 Resona Bank 4.125% 09/29/49 EUR 44.00 Resona Bank 5.850% 09/29/49 USD 46.52 Resona Bank 5.986% 08/29/49 EUR 63.67 Shinsei Bank 1.350% 11/27/12 JPY 74.61 Shinsei Bank 1.450% 12/27/12 JPY 74.45 Shinsei Bank 1.250% 01/25/13 JPY 73.36 Shinsei Bank 1.300% 02/27/13 JPY 74.14 Shinsei Bank 1.250% 03/27/13 JPY 72.41 Shinsei Bank 1.350% 04/26/13 JPY 73.42 Shinsei Bank 1.600% 05/27/13 JPY 73.82 Shinsei Bank 1.650% 06/27/13 JPY 73.55 Shinsei Bank 1.700% 07/26/13 JPY 73.33 Shinsei Bank 1.600% 08/27/13 JPY 72.52 Shinsei Bank 1.700% 09/27/13 JPY 72.46 Shinsei Bank 1.960% 03/25/15 JPY 64.75 Shinsei Bank 2.010% 10/30/15 JPY 64.70 Shinsei Bank 3.750% 02/23/16 JPY 34.00 Shinsei Bank 5.625% 12/29/49 JPY 25.00 Softbank Corp 7.750% 10/15/13 EUR 69.98 Sumitomo Mitsui 4.375% 07/29/49 EUR 56.50 Sumitomo Mitsui 5.625% 07/29/49 EUR 71.12 KOREA ----- GS Caltex Corp 5.500% 10/15/15 USD 69.89 GS Caltex Corp 5.500% 10/15/15 USD 71.55 GS Caltex Corp 6.000% 08/08/16 USD 67.66 GS Caltex Corp 5.500% 04/24/17 USD 64.05 GS Caltex Corp 5.500% 04/24/17 USD 63.41 Hana Bank 5.375% 04/12/17 USD 70.88 Hynix Semi Inc. 4.500% 12/14/12 USD 61.44 Hynix Semi Inc. 7.875% 06/27/17 KRW 38.50 Hynix Semi Inc. 7.857% 06/27/17 USD 38.54 Korea Dev Bank 7.350% 10/27/21 KRW 53.79 Korea Dev Bank 7.400% 10/27/21 KRW 53.79 Korea Dev Bank 7.450% 10/31/21 KRW 53.67 Korea Dev Bank 7.400% 11/02/21 KRW 53.74 Korea Dev Bank 7.310% 11/08/21 KRW 53.69 Korea Elec Pwr 6.000% 12/01/26 USD 70.45 LG-Caltex Oil 5.500% 08/25/14 USD 73.02 Rep of Korea 4.250% 12/07/21 EUR 72.79 Shinhan Bank 5.663% 03/02/35 USD 50.10 Shinhan Bank 6.819% 09/20/36 USD 53.98 MALAYSIA -------- Advance Synergy Berhad 2.000% 01/26/18 MYR 0.04 Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 0.92 AMBB Capital 6.770% 01/29/49 USD 61.53 Berjaya Land Bhd 5.000% 12/30/09 MYR 3.20 Cagamas Berhad 3.640% 05/05/09 MYR 4.01 Crescendo Corp B 3.750% 01/11/16 MYR 1.10 Eastern & Orient 8.000% 07/25/11 MYR 0.60 Huat Lai Resources 5.000% 03/28/10 MYR 0.20 Insas Berhad 8.000% 04/19/09 MYR 0.26 Kamdar Group Bhd 3.000% 11/09/09 MYR 0.15 Kretam Holdings 1.000% 08/10/10 MYR 0.96 Kumpulan Jetson 5.000% 11/27/12 MYR 0.41 LBS Bina Group 4.000% 12/31/09 MYR 0.60 Mithril Bhd 8.000% 04/05/09 MYR 0.10 Mithril Bhd 3.000% 04/05/12 MYR 0.66 Nam Fatt Corp 2.000% 06/24/11 MYR 0.18 Puncak Niaga Holdings Bhd 2.500% 11/18/16 MYR 0.72 Rubberex Corporation Berhad 4.000% 08/14/12 MYR 0.73 Silver Bird Grp 1.000% 02/15/09 MYR 0.31 NEW ZEALAND ----------- Allied Farmers 9.600% 11/15/11 NZD 30.97 Allied Nationwid 11.520% 12/29/49 NZD 50.00 BBI Ntwrks NZ Ltd 8.000% 11/30/12 NZD 45.26 Blue Star Print 9.100% 09/15/12 NZD 43.74 Cadmus Devt. Ltd 9.900% 01/15/10 NZD 63.82 Fidelity Capital 9.250% 07/15/13 NZD 19.25 Fletch Build Fin 9.000% 03/15/10 NZD 44.81 Fletcher Bui 8.900% 03/15/13 NZD 15.23 Fletch Build Fin 8.900% 03/15/13 NZD 11.46 Generator Bonds 8.200% 09/17/11 NZD 25.30 Goodman Finance 9.950% 11/15/11 NZD 18.65 Hellaby Holdings 8.500% 06/15/11 NZD 33.57 Infratil Ltd 8.250% 05/15/11 NZD 20.51 Infrastr & Util 8.500% 11/15/11 NZD 18.81 Infratil Ltd 8.500% 02/15/20 NZD 9.61 Infratil Ltd 10.180% 12/29/49 NZD 52.00 Marac Finance 10.500% 07/15/13 NZD 0.11 Nuplex Industrie 9.300% 09/15/12 NZD 12.72 NZ Finance Hldgs 9.750% 03/15/11 NZD 35.02 Pins Securities 9.250% 01/31/14 NZD 26.25 PGG Wrightson 8.250% 10/08/10 NZD 27.86 Powerco Limited 7.640 04/15/10 NZD 39.72 Powerco Limited 6.220% 03/29/11 NZD 20.64 Powerco Limited 6.590% 09/28/12 NZD 12.63 Powerco Limited 6.390% 03/29/13 NZD 9.50 Powerco Limited 6.740% 09/28/17 NZD 7.28 PPCS Ltd 11.500% 12/15/10 NZD 32.24 Skycity Entert 8.000% 05/15/10 NZD 36.07 South Canterbury 10.430% 12/15/12 NZD 0.11 St Laurence Prop 9.250% 07/15/10 NZD 41.11 St Laurence Prop 9.250% 05/15/11 NZD 30.29 PHILIPPINES ----------- Rizal Comm Bank 9.875% 10/31/49 USD 75.00 SINGAPORE --------- Avago Tech Fin 11.875% 12/01/15 USD 74.37 Capitaland Ltd. 2.100% 11/15/16 SGD 72.45 Capitaland Ltd. 3.500% 07/17/17 SGD 69.55 Capitaland Ltd. 3.125% 03/05/18 SGD 70.65 Capitaland Ltd. 2.950% 06/20/22 SGD 58.17 Chartered Semico 6.250% 04/04/13 USD 74.09 Chartered Semico 6.375% 08/03/15 USD 66.13 Ciliandra P Fin 10.750% 12/08/11 USD 64.87 Empire Cap Res 9.375 12/15/11 USD 67.00 Olam International Limited 1.000% 07/03/13 USD 69.14 SRI LANKA --------- Sri Lanka Govt 6.850% 04/15/12 LKR 73.85 Sri Lanka Govt 6.850% 10/15/12 LKR 71.12 Sri Lanka Govt 8.500% 01/15/13 LKR 74.43 Sri Lanka Govt 8.500% 07/15/13 LKR 72.69 Sri Lanka Govt 7.500% 08/01/13 LKR 69.51 Sri Lanka Govt 7.500% 11/01/13 LKR 68.61 Sri Lanka Govt 8.500% 02/01/18 LKR 64.22 Sri Lanka Govt 8.500% 07/15/18 LKR 63.46 Sri Lanka Govt 7.500% 08/15/18 LKR 58.64 Sri Lanka Govt 7.000% 10/01/23 LKR 52.42 THAILAND -------- Advance Agro Pub 11.000% 12/19/12 USD 49.87 G Steel 10.500% 10/04/10 USD 39.97 Italian-Thai Dey 4.500% 06/10/13 USD 47.86 PTT PCL 5.875% 08/03/35 USD 70.92 ********* 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 2009. 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 ***